Charts of the Week: The potency of policy
A recurring theme in the dataflow over the past week concerns the potency of monetary policy. Another positive CPI surprise from the UK and a 50bps hike from the BoE have, in particular, offered a stark reminder that central banks are struggling to calibrate monetary policy at an appropriate level. Against that backdrop our charts this week home in on the following themes:
· The re-renewed vigour in the US housing market
· Restraints on UK household purchasing power
· UK food and energy price inflation
· The contraction in narrow money growth in the euro area
· The liquidity slowdown in China…
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