Daily Archives: July 26, 2011

Claire Jones

From a monetary policy perspective, what’s interesting about today’s preliminary GDP figure is that both hawks and doves believe it supports their arguments.

GDP coming in at 0.2 per cent for the second quarter means the UK economy has barely grown over the past nine months, which adds weight to doves’ calls for further easing if the economy does not pick up in the three months to September.

This from Gavyn Davies, writing for the FT:  

Claire Jones

Christine Lagarde

Christine Lagarde. Image by Getty.

The Federal Reserve is too often seen as a panacea for the US’s economic ills. This no doubt owes much to its dual mandate to both maintain price stability and promote employment, despite there being little monetary policy can do to influence structural unemployment.

And so Christine Lagarde’s comments today that there has been a rise in structural unemployment in the US – and that, by implication, fiscal policy should shoulder more of the burden for creating jobs – is to be welcomed. 

Claire Jones

This from the FT’s Rahul Jacob in New Delhi and James Fontanella-Khan in Mumbai:

India’s central bank has raised interest rates by a higher than expected 50 basis points, signalling its determination to battle persistent high inflation

Ralph Atkins

Christian Noyer, Banque de France governor, has created confusion after apparently signalling another European Central Bank interest rate rise is in the pipeline. In an interview published on Tuesday, he told Financial Times Deutschland – the German language newspaper - that the ECB was exercising “strong vigilance” - code used in Frankfurt to signal a rise in official borrowing costs is a month away.

Or did he? Mr Noyer may have been a victim of the eurozone’s linguistic diversity.