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Economics

Dovish Fed, hawkish BOC

BENJAMIN ONG  |  THURSDAY, 13 JUL 2017
The Bank of Canada's decision to lift its benchmark rate by 25 basis points overnight came as no surprise to financial markets. This was telegraphed in late June by BOC chief Stephen Poloz when he commented that interest rate cuts "have done their job".

Business conditions return to pre-GFC levels

BENJAMIN ONG  |  WEDNESDAY, 12 JUL 2017
Rising business conditions and business confidence leads improvement in consumer confidence as businesses increase expenditures on plant and equipment and on staff hiring, presumably offering higher wages.

Low inflation exporter

BENJAMIN ONG  |  TUESDAY, 11 JUL 2017
Easing inflation in China would add to other factors - such as wages and commodity prices -- keeping inflation low in the US and the Eurozone, among others.

Economics 101 is dead

BENJAMIN ONG  |  MONDAY, 10 JUL 2017
Economists have already coined the term "stagflation" - an economic state of no growth (stagnation) and elevated inflation - but we still have to come up with a nomenclature for the current growth/inflation dynamics around the globe.

Hawkish central banks? Not the BOJ

BENJAMIN ONG  |  FRIDAY, 7 JUL 2017
Although recent data releases showed strengthening momentum in Japan's economic growth, inflation remains a no-show.

Good goings-on in China

BENJAMIN ONG  |  THURSDAY, 6 JUL 2017
Capital outflows have halted in recent months, underscored by the gentle but consistent increase China's foreign exchange reserves - up for the fourth straight month to US$3.05 trillion in May - the Chinese currency and the stock market.

Data dictates immediate BOE action

BENJAMIN ONG  |  WEDNESDAY, 5 JUL 2017
If there's any other major central bank that would soon follow the Fed towards normalisation, it would be the British central bank.

Stronger growth sans inflation

BENJAMIN ONG  |  TUESDAY, 4 JUL 2017
As if to further underscore the current growth/inflation conundrum, today's reports show continuing strengthening momentum in the world's major economies - one that quickly followed updates on consumer prices indicating not only that inflation remains ...

Not so happy EOFY for the All Ords

BENJAMIN ONG  |  MONDAY, 3 JUL 2017
Hawkish central bank speaks may have damped equity market sentiment in towards the dying days of June, but Australian equities less so - the All Ordinaries index outperformed (up 0.05% over the month) both developed market equities (down 3.17%) and emerging ...

Australian property love affair cannot please everyone

BENJAMIN ONG  |  FRIDAY, 30 JUN 2017
The just-released RBA Financial Aggregates report for May show that Australia's credit state of affairs continues.