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Any more for negative rates?

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  • GDP is a statistic that is not generally known for its pinpoint accuracy - the US have revised their GDP numbers up to 80 years after the event. Chinese data also enjoys a certain reputation. Nevertheless the release of Chinese GDP still attracts a lot of market attention.
  • The data showed Chinese growth slightly above expectations in the final quarter of 2014. However the accompanying retail sales data (which was strong) may be more interesting in setting expectations - China's transition to a more consumer focused economy puts the emphasis here, not on GDP.
  • The Swiss National Bank's volatility inducing policies still have repercussions - the Danmarks Nationalbank cut rates and took their deposit rate negative yesterday. Economically, negative rates at a central bank act more as tax on the banking system than a negative interest rate per se.
  • German producer price and ZEW business expectations data are due - the former overwhelmed by markets' conviction of ECB quantitative policy, and the latter subject to the normal caveats as to survey data quality. US housing market data is also scheduled.