In this special edition of Economic Research devoted to interest rate cuts, we introduce you to Isabelle Mateos y Lago, who succeeds William De Vijlder as Chief Economist of the BNP Paribas Group and Director of the Economic Research department. The Fed and the ECB are cutting rates. How much of a good sign is this? This is the subject we then tackle with Hélène Baudchon, before discussing the effects of the rate cuts on European banks with Laurent Quignon. Finally, we end with Christine Peltier analysing the effects of the Chinese slowdown on emerging countries.
Meet Isabelle Mateos y Lago who succeeds William De Milder as Chief Economist of the BNP Paribas Group and Director of the Economic Research department.
The ECB made its first rate cut at the beginning of the summer, followed by the Fed, which lowered rates by 50 basis points. After three cuts of 25 basis points by the ECB,Hélène Baudchon explores. Is this a good sign or a bad one?
After a long, unfavourable period of low rates lasting almost six years, European banks have seen their interest margins and profitability improve overall with the rise in ECB rates in 2022 and 2023. As we now enter a period of falling rates, Laurent Quignon talks to us about their effects on the interest margins of European banks.
The economic slowdown in China and the implementation of its industrial policy will have large consequences for the rest of the world. Effects will vary from country to country, depending on the transmission channels. For emerging countries, the overall impact will not be necessarily negative, notably thanks to the foreign direct investment channel, which could well change the situation. We are discussing this with Christine Peltier.
BNP Paribas Economic Research wishes you all the best for 2024. On the macroeconomic front, the highlight of 2023 was the peak in official rates in the United States and the eurozone, but what is in store for 2024?In this video, you can discover the topics and points of attention that will be monitored throughout 2024 for each team: Banking Economy, OECD and Country Risk.
BNP Paribas Chief Economist William De Vijlder interviews Hélène Baudchon, Head of the OECD Economic Research team; Richard Malle, Global Head of Research at BNP Paribas Real Estate; and François Faure, Head of the Emerging Markets and Country Risk team. They take stock of the global economic situation against a backdrop of inflation, rising interest rates and monetary tightening by central banks. Are we coming to the end of this monetary tightening cycle? What are the impacts on economic growth and financial markets? Have official rates reached a peak in the eurozone or the United States? What influence has the rise in interest rates on the property market? What is happening in emerging countries? These questions will be addressed in three chapters. Enjoy your viewing!
In 2022 as a whole, average economic growth in Emerging Markets (EMs) slowed to an estimated 3.8% down from 6.6% in 2021. The slowdown followed the post-Covid shock rebound of 2021 and was much aggravated by the rise of powerful headwinds throughout the year, including: the repercussions of Russia’s war in Ukraine on activity in Europe and global inflation, monetary tightening to fight against price pressures, the weakening in Chinese economic growth (notably resulting from Covid-related disruptions and the crisis in the property sector), and the downturn in world trade.
Near real-time GDP forecasting ("nowcast") models are commonly used by economic analysts who monitor developments in GDP growth on a daily basis before the publication of quarterly national accounts. These models enable an estimate of GDP growth based on indicators that have already been published at the time of forecasting.
