Central banking
Australia’s central bank flags more rate rises, 75 basis point moves unlikely
The Reserve Bank of Australia building in Sydney on June 7, 2022. Australia’s top central banker on Tuesday flagged a lot more policy tightening ahead as rates were still “very low” and it was important that higher inflation did not feed into public expectations and wage claims. Muhammad Farooq | Afp | Getty Images Australia’s […]
Read More
Have markets hit the bottom? Ed Yardeni says it’s not over until inflation peaks
Markets have been on a wild ride recently, swinging between gains and losses. However, the brutal selling has meant the S&P 500 is still in a bear market. When asked whether markets have hit a bottom, Wall Street veteran Ed Yardeni said he doesn’t think “we’re gonna climb out of this thing very quickly, not […]
Read More
Sterling has further to fall as Bank of England wrestles growth-inflation conundrum, strategists say
LONDON — Sterling has fallen more than 9% against the U.S. dollar so far this year and despite a recent reprieve, currency strategists see further pain ahead for the pound. The Bank of England last week delivered another 25 basis point hike to interest rates, a more cautious move than peers such as the U.S. […]
Read More
The world can avoid a recession but it won’t think it can until it does, says David Roche
A “global recession depression” is unlikely to happen, but the world won’t think it can avoid one until it does, according to veteran strategist David Roche. “The likelihood is that the world is going to worry most about recession because what you’re describing is a lot of things going wrong at the same time, and […]
Read More
China keeps lending benchmarks unchanged, wary of policy divergence risks
China kept its benchmark lending rates for corporate and household loans steady at itsJune fixing on Monday. Jiang Qiming | China News Service | Getty Images China stood pat on its benchmark lending rates for corporate and household loans, as expected, on Monday, with global central banks’ rate increases making it tough for Beijing to […]
Read More
Fed promises ‘unconditional’ approach to taking down inflation in report to Congress
U.S. Federal Reserve Board Chairman Jerome Powell takes questions after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, June 15, 2022. Elizabeth Frantz | Reuters […]
Read More
Bank of Japan maintains ultra-low rates, warns it is closely watching yen moves
Pedestrians walk in front of the Bank of Japan head office building in Tokyo on April 27, 2022. The Bank of Japan maintained ultra-low interest rates on Friday and its guidance to keep borrowing costs at “present or lower” levels, signaling its resolve to focus on supporting the economy’s tepid recovery from the Covid-19 pandemic. […]
Read More
Bank of England hikes rates for the fifth time in a row as inflation soars
Bank of England Governor Andrew Bailey has said he is not at all happy with rising inflation, but that the central bank couldn’t have done anything differently to avoid it. Bloomberg | Bloomberg | Getty Images LONDON — The Bank of England on Thursday implemented a fifth consecutive hike to interest rates as it looks […]
Read More
A shallow recession is on the way, strategists warn. Here’s how it could play out
Traders work, as Federal Reserve Chair Jerome Powell is seen delivering remarks on a screen, on the floor of the New York Stock Exchange (NYSE) in New York City, June 15, 2022. Brendan McDermid | Reuters A shallow recession in the U.S. is a “virtual certainty” in the third quarter, according to Destination Wealth Management’s […]
Read More
Swiss National Bank hikes rates by half a point, franc surges
Swiss National Bank (SNB), the central bank of Switzerland. FABRICE COFFRINI | AFP | Getty Images The Swiss National Bank raised its policy interest rate for the first time in 15 years on Thursday, joining other central banks in tightening monetary policy to fight resurgent inflation and sending the safe-haven franc sharply higher. The central […]
Read More