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Oil and gold prices rise modestly as new era begins in SyriaLynn Song, chief economist for Greater China at ING, has looked at the Chinese inflation figures in more detail.The main reason for the slowdown was food prices, which fell -2.7% month-on-month to bring the year-on-year level to just 1.0%.Non-food inflation, on the other hand, managed to bounce back to 0.0% YoY after two months of year-on-year deflation. Non-food prices remain under pressure amid high price competition in China.The unexpectedly weak November read further confirms our view that there is still plenty of room for monetary policy easing in the months ahead.Markets have been discussing the possibility of an imminent RRR [reserve requirement ratio] cut which is certainly on the table, but the inflation data shows that there is capacity to bundle an RRR cut with a further interest rate cut as well. We are expecting 30bp of rate cuts and 100bp of RRR cuts before the end of 2025.This is the first time a British chancellor has addressed the Eurogroup [of finance ministers] since Brexit.It is a signal of the new UK government’s commitment to resetting our country’s relationship with the European Union, and the importance I place in realising the economic potential of our shared future.I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. It’s about improving both our growth prospects.The reset in relations is about doing what is the best interests of our shared economies and those that depend on it. That means breaking down barriers to trade. Continue reading…
Oil and gold prices rise modestly as new era begins in Syria
Lynn Song, chief economist for Greater China at ING, has looked at the Chinese inflation figures in more detail.
The main reason for the slowdown was food prices, which fell -2.7% month-on-month to bring the year-on-year level to just 1.0%.
Non-food inflation, on the other hand, managed to bounce back to 0.0% YoY after two months of year-on-year deflation. Non-food prices remain under pressure amid high price competition in China.
The unexpectedly weak November read further confirms our view that there is still plenty of room for monetary policy easing in the months ahead.
Markets have been discussing the possibility of an imminent RRR [reserve requirement ratio] cut which is certainly on the table, but the inflation data shows that there is capacity to bundle an RRR cut with a further interest rate cut as well. We are expecting 30bp of rate cuts and 100bp of RRR cuts before the end of 2025.
This is the first time a British chancellor has addressed the Eurogroup [of finance ministers] since Brexit.
It is a signal of the new UK government’s commitment to resetting our country’s relationship with the European Union, and the importance I place in realising the economic potential of our shared future.
I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. It’s about improving both our growth prospects.
The reset in relations is about doing what is the best interests of our shared economies and those that depend on it. That means breaking down barriers to trade.
