German and EUROZONE ZEW Economic Sentiment Released
The German ZEW Economic Sentiment came out above expectations at 13.0 from the previous -3.5. A rise to 1.8 was forecast.
The EU ZEW Economic Sentiment came out at 11.8 from the previous -6.5. A rise to 1.0 was forecast.
- Becoming likely that economy will slowly recover in H2 of 2009
- Sees bottoming in economic slowdown
BoE’s Fisher on the Wires
BOE’s Fisher: Remains concerned that inflation target was missed on the downside
- Inflation may continue to fall lower than target
- Main downside risk to the UK is a continued downward move in the global economy
- Remains concerned that monetary policy implemented may not be effective
- Still sees insufficient lending coming out of the banking system
- Policy actions taken so far may not have been enough
- Markets have remained supportive of asset purchase plan
- Remains aware of moral hazard
- QE must be down quickly and in appropriate scale
- QE must be done to provide liquidity to non-financial sector, remains confident that it is the correct policy
BoE Trends in Lending April Report
BOE Trends in Lending April Report: Sees weak demand for unsecured lending; availability of unsecured lending seen unchanged in Q2 q/q
- Overall availability of credit is expected to rise over the course of the next 3-months
- Demand for mortgages seen continuing at lower levels
UK Data Released
The UK CPI came out as forecast at 2.9% from the previous 3.2%.
The UK RPI came out at -0.4% from the previous 0.0%. A drop to -0.6% was forecast. This is the first decline in the UK annual RPI since March 1960.
The UK Core CPI came out at 1.7% from the previous 1.6%. A slight drop to 1.5% was forecast.
ECB’s Ordonez on the Wires
ECB’s Ordonez: Support non-conventional measures by ECB; reiterates view that refi rate could move lower
- Sates that unconventional measures need to be studied
German PPI Released
Germany’s PPI came out worse than expected at -0.7% from the previous -0.5%. A slight rise to -0.3% was forecast.
RBA Governor Stevens Comments
RBA GOVERNOR STEVENS: AUSTRALIA’S ECONOMY IS IN RECESSION; SEES SIGNS OF RECOVERY IN CHINA
- Terms of trade to fall but unlikely to reverse recent years’ gains
- Long term economic prospects remain good
- Global economy is in much worse state than in 2001-02 recession
- Effects of monetary, fiscal stimulus to come through for some time yet
- Global growth to be lower than in prior decade for some time
Australia’s Treasurer Swan Comments
Australia’s Treasurer Swan: Economic contraction inevitable – ABC Radio
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