Charts of the Week: Growth and policy decoupling

Financial markets have been a little more unsettled in recent days as recession fears have resurfaced again in several major economies. Those fears have been amplified by remarks from central bankers suggesting that further monetary policy restriction is likely. Still, most gauges of financial market stress have not signalled any significant instability in recent weeks. In our charts this week we home in on:

·       The divergence between US and euro area data surprises

·       Ebbing rates of core CPI inflation in Canada

·       Recent UK financial market trends

·       Some evidence of slower labour market activity

·       Weaker inflation expectations in the euro area

·       Household savings trends in the US