How central banks use interest rates to steer the economy
Policy rates ripple through borrowing costs, asset prices and exchange rates. This explainer sets out how the transmission mechanism works — and where it can break down.
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Policy rates ripple through borrowing costs, asset prices and exchange rates. This explainer sets out how the transmission mechanism works — and where it can break down.
The relationship between short- and long-dated bond yields is one of the most watched signals in finance. Its message is useful but frequently over-interpreted.
Companies are weighing the efficiency of concentrated production against the resilience of diversified networks. The trade-offs are rarely simple.
Currency values reflect a tug-of-war between trade, investment and policy expectations. Here are the main forces at work.
General-purpose technologies have historically taken time to show up in productivity data. The same dynamics may apply to AI.
A property’s value depends on the income it generates and the return investors require. Both sides of that equation can shift quickly.
Sovereign ratings influence borrowing costs and investment mandates. Understanding their methodology helps put rating changes in context.
Putting a price on emissions is a central tool of climate policy. The design choices shape who pays and how effective it is.
Strategy documents rarely survive first contact with a crisis. The quality of a leadership team’s decision-making often matters more.
Market access, costs, skills and policy stability all feature in cross-border investment decisions.
Inflation can be measured in several ways, and each tells a slightly different story about price pressures.
Digital entrants have unbundled parts of the banking value chain. Incumbents and regulators are adapting.
Decarbonising the global economy requires sustained investment across power, transport, industry and buildings. This report outlines the main building blocks.
Productivity is the main source of long-run growth in living standards, yet it is notoriously hard to measure.
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GDP is the most quoted number in economics. Understanding how it is built explains why it can mislead as well as inform.
A country’s trade surplus or deficit is the mirror image of decisions about saving and investment at home.
Popular shorthand defines a recession as two consecutive quarters of falling output. Official dating bodies use a broader test.
Conditions in major financial centres often shape borrowing costs and capital flows in developing economies.