monetary-policy
Top StoriesResilient U.S. Dollar Soars to 24-year High vs Yen, 37-year Peak vs Sterling
Top StoriesBoE’s Bailey Speaks About Surging Inflation and Rate Hikes
Top StoriesRisk of UK Balance of Payments Crisis Under Truss Is Rising, Deutsche Bank Warns
Top StoriesCzech Interest Rates Already at High Level, Central Bank Governor Says
Fed’s Job-Friendly ‘soft Landing’ Hinges on History Not Repeating
Date: September 2, 2022
By Howard Schneider (Reuters) – Federal Reserve officials have acknowledged that the battle against inflation will be paid for with lost jobs, and the U.S. central bank will need an unlikely combination of events to keep those losses to a minimum as interest rates continue to rise. Economists assessing the trade-off facing the Fed estimate...
High Inflation Is Bad for UK Productivity – BoE’s Mann
Date: September 2, 2022
LONDON (Reuters) – Britain’s very high inflation risks distracting businesses from the longer-term decisions needed to boost ailing productivity, Bank of England policymaker Catherine Mann said in a podcast released on Thursday. Mann repeatedly called for half-point increases in the BoE’s main interest rate before a majority of the Monetary Policy Committee backed one last...
High Inflation, Recession Risk Widen ECB Dilemma
Date: August 31, 2022
FRANKFURT (Reuters) -Euro zone inflation jumped to another record high and will soon hit double-digit territory, heralding a string of big interest rate hikes even as a painful recession appears increasingly certain. Driven by expensive gas and a devastating drought, consumer prices jumped more than expected in August and further rises are already in the...
Near 50-year High German Inflation Strengthens Case for Larger ECB Rate Rise
Date: August 30, 2022
BERLIN (Reuters) -German inflation rose to its highest level in almost 50 years in August, beating a high set only three months earlier, data showed, strengthening the case for the European Central Bank to go for a larger basis-point interest rate increase next month. Consumer prices, harmonised to make them comparable with inflation data from...
UK 10-year Bonds Head for Biggest Monthly Fall Since 1986
Date: August 30, 2022
By David Milliken LONDON (Reuters) – British government bonds tumbled again on Tuesday, catching up with losses for U.S. and German debt following a public holiday on Monday as markets digested remarks from Federal Reserve Chair Jerome Powell. Ten-year British government bond yields are on course for their biggest monthly rise since September 1986 –...
ECB Must Swiftly Normalise Rates; Neutral May Not Be Enough, Knot Says
Date: August 30, 2022
(Reuters) -The European Central Bank must swiftly normalise interest rates as inflation could still go higher and lifting rates to the neutral level, which neither stimulates nor slows growth, may not be enough, Dutch central bank chief Klaas Knot said on Tuesday. The ECB raised its deposit rate by 50 basis points to zero in...