Norway | A strong bounce back in economic activity in Q2
Signs continue to point towards a strong bounce back in economic activity in
Q2. The vaccine rollout has advanced rapidly in recent weeks and brings the
inoculation rate closer in line with the Nordic average.
What you will learn from this report:
- Consumption of services recorded its fastest monthly growth
since June 2020
- Rising firm employment expectations bodes well for the labour market recovery,
- Conflicting inflation signals could pose a challenge for Norges Bank
Eurozone: ECB minutes indicate that July rate hike is a near-certainty
The minutes from the April ECB meeting confirm the hawkish tilt initiated a few months ago continues to gain momentum. With a majority of the council increasingly concerned about the inflation outlook, this makes an interest rate hike already in July almost certain. This should not come as a surprise, however, as recent developments render hawks' case arguably easier to make.Find Out More
For how long will Japan’s households support bonds and the yen?
Households' financial surpluses sharply increased in 2020 and remained high in 2021 due to the Covid pandemic. Most of the surplus continued to go to cash and deposits, but there was a notable increase in funds going to investment trusts (with a large portion invested in foreign equities) in 2021. Amid rising international yield differentials and a weakening yen, there is market chatter about whether this is the beginning of a structural shift from households' risk-averse investment style?Find Out More