Eurozone 2022 themes: Now for the hard part
The eurozone pushed on with a strong recovery in 2021, but in many ways that’s been the easy part. With reopening tailwinds mostly exhausted, the bloc will face different challenges in 2022.
What you will learn:
- We still expect another year of robust growth – close to 4% – but the recovery is likely to be choppy due to resurgent Covid risks, supply chains problems, and surging energy prices.
- Our expectation of strong growth continues to rest on consumer spending as we transition from public- to private-led demand growth.
- Supply chain issues are still a constraint for now, but we expect bottlenecks to recede next year.
Sterling’s woes, Kwarteng’s vows, Bailey in the middle
The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.Find Out More
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.Find Out More