US CPI inflation likely unchanged at 2.1% y/y – Danske Bank

Research Team at Danske Bank, suggests that the US CPI inflation figures for January are due today.

Key Quotes

“Though FOMC is targeting PCE core inflation, it is also monitoring the development in CPI core inflation. PCE core has been subdued in recent years, but the trend in CPI core has been upward sloping and thus more encouraging for the Fed. In line with consensus, we expect that CPI core rose 0.2% m/m in January leaving the annual growth rate unchanged at 2.1% y/y.”

Feb 19, 2016

JPY: Negative interest rates an act of desperation – Nomura

Research Team at Nomura, suggests that the adoption of negative interest rates is an act of desperation born out of despair over the inability of quantitative easing and inflation targeting to produce the desired results.

China: Inflation accelerates in January – ING

Tim Condon, Chief Economist at ING, suggests that in China deep PPI deflation squeezes business cash flows and calls for lower interest rates and they forecast 50bp of PBOC policy rate cuts in 2016.