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EconGrapher (< 20)

April 2011

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Monetary Policy Week in Review - 30 April 2011

April 30, 2011 – Comments (0)

The past week saw 11 central banks announce monetary policy decisions, with just 3 making adjustments to interest rates.  All 3 policy moves were tightening from emerging markets: Colombia + 25bps to 3.75%, Vietnam +100bps, and Russia +25bps to 8.25%.  Meanwhile those that held rate unchanged were: Israel 3.00% Botswana 9.50% US 0.25% Namibia 6.00% New Zealand 2.50% Japan 0.10% Hong Kong 0.50% and Egypt 8.25%. 

Article source: http://www.centralbanknews.info/2011/04/monetary-policy-week-in-review-30-april.html  [more]

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UK: A decade of debt and insolvency

April 28, 2011 – Comments (0)

A detailed look at insolvency levels in the UK provides an interesting insight into how levels of debt and insolvency have increased over the last 10 years, as well as how borrowers have dealt with a rise in debt problems.

The article, entitled 'A decade of debt', shows how the number of UK insolvencies has rocketed in the last ten years. In 2001, there were 29,775 personal insolvencies in England and Wales (as recorded by the Insolvency Service, the UK's official insolvency body), increasing to 135,089 by 2010. This represents an approximate 350% increase in the number of insolvencies in that time.

Now let's look at how each type of insolvency has changed (here's where it gets interesting). Bankruptcy - the 'traditional' means of becoming insolvent - saw a 150% increase between 2001 (23,477 cases) and 2010 (59,194 cases).

By comparison, IVAs (Individual Voluntary Arrangements) increased by just over 700% - from 6,298 in 2001 to 50,716 in 2010. And Debt Relief Orders (DRO), which were only launched in April 2009, recorded 11,831 cases in the remainder of 2009 and 25,179 in 2010.

This suggests that the way people are tackling their debts is changing significantly. Given that IVAs were introduced way back in 1986, it's perhaps surprising to see such a huge rise in a relatively short timeframe. If things carry on this way, we could see the annual number of IVAs 'overtake' bankruptcy in the very near future.

But why is this? Well, it could be because many people consider IVAs a preferable alternative to bankruptcy. This can be especially true for homeowners, who could lose their home if they go bankrupt.

When you consider that IVAs usually last considerably longer than most cases of bankruptcy - five years as opposed to between one and three - it's fair to assume that many people who opt for an IVA are homeowners who don't want to lose their home.

Debt Relief Orders can be counted separately for now, as they're aimed at a very specific group of people. They're designed to help people with very low disposable incomes and few assets. Crucially, they can help people who can't afford the initial fees for bankruptcy and wouldn't qualify for an IVA - people who previously probably wouldn't have had access to insolvency unless their lenders forced them into bankruptcy.

The article goes on to explain how peaks in insolvency levels tend to come some time after the economy has returned to growth (something known as 'insolvency lag'). A few forecasts we've seen already indicate that we may have seen the worst of it for now, and the number of insolvencies may be about to come down again. Only time will tell.   [more]

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Economic Calendar: U.S. and U.K. GDP, More Inflation Data, and the Fed

April 25, 2011 – Comments (0)

Here's the economic calendar for the week commencing the 24th of April 2011. The week ahead holds a range of key economic events including much anticipated Q1 GDP results for the U.S. and U.K. Monetary policy meetings in the U.S., Japan and New Zealand. House price data and consumer confidence numbers in the U.S. And inflation numbers from Australia, Japan, and much of the Euro-Zone economies.

http://seekingalpha.com/article/265145-economic-calendar-u-s-and-u-k-gdp-more-inflation-data-and-the-fed  [more]

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Top 5 Graphs of the Week: BRIC Focus

April 23, 2011 – Comments (0)

This week the focus goes to the giants of the emerging markets, the "BRIC" economies (the economic/investment one, not the political club). In this edition we review inflation, GDP, monetary policy and the stock markets of Brazil, Russia, India, and China. Also thrown in is a quick review of the monetary policy decisions over the past week.


Article Source: http://www.econgrapher.com/top5graphs23apr11.html  [more]

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Top 5 Graphs of the Week: BRIC Focus

April 23, 2011 – Comments (0)

This week the focus goes to the giants of the emerging markets, the "BRIC" economies (the economic/investment one, not the political club). In this edition we review inflation, GDP, monetary policy and the stock markets of Brazil, Russia, India, and China. Also thrown in is a quick review of the monetary policy decisions over the past week.


Article Source: http://www.econgrapher.com/top5graphs23apr11.html  [more]

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Monetary Policy Week in Review - 23 April 2011

April 22, 2011 – Comments (0)

Global monetary policy tightening continued through the past week.  Central Banks that increased interest rates included those of: Thailand +25bps to 2.75%, Sweden +25bps to 1.75%, and Brazil +25bps to 12.00%.  Meanwhile those that opted to hold interest rates unchanged were: Hungary at 6.00%, Iceland at 4.25%, and Turkey at 6.25%.  Aside from interest rate changes the week also saw another 50 basis point increase in China's required reserve ratio, bringing the average ratio for large banks to 20.50%, and the Central Bank of Turkey increased two of its reserve ratios by 100bps.  Elsewhere the Belarusian central bank instituted a secondary currency market, taking a step in the direction of a freely floating currency.


Full Story: http://www.centralbanknews.info/2011/04/monetary-policy-week-in-review-23-april.html  [more]

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Economic Calendar: Inflation, Property Markets, And Spending Recoveries

April 18, 2011 – Comments (0)

Here's the Economic Calendar for the week commencing the 17th of April 2011. The week ahead brings more inflation data with New Zealand and Canada reporting CPI, and Australia and Germany reporting PPI. Retail Sales figures are also due out for the UK, Canada, and Italy. On monetary policy, the Reserve Bank of Australia and Bank of England will release their recent meeting minutes. Elsewhere, there's China property prices, EU PMI, US housing starts, Japan exports, and US existing home sales.

http://seekingalpha.com/article/263967-economic-calendar-inflation-property-markets-and-spending-recoveries  [more]

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Is China's Inflation Peaking?

April 17, 2011 – Comments (0)

China just released its regular monthly (and March quarter) data dump, and this article provides a brief update on two key statistics: GDP and CPI (for reasons which I will explain later). First up, a review of the results: Q1 2011 GDP growth came in at 9.7%, compared to consensus 9.4%, and previous 9.8%. Consumer price inflation rose to 5.4% in March, compared to consensus 5.2%, and previous 4.9%. So some very interesting results there.

http://seekingalpha.com/article/263862-is-china-s-inflation-peaking  [more]

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Top 5 Economics Graphs of the Week - 16 April 2011

April 15, 2011 – Comments (0)

This week the focus goes entirely to China, with an overview of some of the key economic statistics released over the past week. We look at the GDP results, then summarize the inflation situation, followed by a look at retail sales growth and industrial production, finishing up with a snapshot of new loans.  [more]

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Monetary Policy Week in Review - 16 April 2011

April 15, 2011 – Comments (0)

A major feature of the past week was continued emerging market monetary policy tightening, but it wasn't all conventional interest rate hikes.  Of those that did increase rates were Chile +50bps to 4.50%, and Armenia +25bps to 8.50%.  Those that held rates steady after reviewing policy were: South Korea 3.00%, Indonesia 6.75%, Canada 1.00%, Rwanda 6.00%, Georgia 8.00%, and Mexico 4.50%.  Meanwhile Angola slashed rates 500bps to 20.00%, and Iran's central bank decreed that Iranian banks should lower their interest rates from 26-28% to 14-17%.  Elsewhere, Vietnam made a series of adjustments to reserve rates to stabalise its currency (the Dong), Sri Lanka raised its reserve requirements by 100bps, and the Singapore Monetary Authority adjusted its currency policy upwards in response to rising inflation.


Full story: http://www.centralbanknews.info/2011/04/monetary-policy-week-in-review-16-april.html  [more]

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Top 5 Graphs of the Week: Developed Economies Focus

April 09, 2011 – Comments (0)

This week we focus in on the state of developed markets. First up is a look at the March PMI results for the US, then we look at some key economic data for the Group of 7 (G7). The graphs show rebounding inflation, very gradual improvement in employment figures, and normalizing GDP growth. Finally we check in on some of the monetary policy decisions over the past week, with an emphasis on the developed market vs emerging market monetary policy outlook.  [more]

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Monetary Policy Week in Review - 9 April 2011

April 08, 2011 – Comments (0)

The past week in monetary policy was dominated by two of the world's most influential central banks: the People's Bank of China, and the European Central Bank. Of the banks to change policy settings were; China +25bps to 6.31%, Poland +25bps to 4.00%, Qatar -50bps to 1.00%, Serbia +25bps to 12.50%, the EU +25bps to 1.25%, Peru +25bps to 4.00%, and Denmark +25bps to 1.30%. Those that held rates unchanged were Australia at 4.75%, Japan at 0.10%, and the UK at 0.50%.    [more]

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