monetary-policy
TradingYen Sinks to Fresh 24-year Low vs U.S. Dollar
InvestingWall Street Set for Bounceback but Recession Risk Keeps Investors Cautious
Top StoriesBoE’s Pill Says Rate Rises Are a Blunt Tool, Cannot Fine-Tune Sterling
Top StoriesBank of England’s Mann Says Weak Pound Makes Case for Big Rate Hike
Marketmind: Why the Calm in Markets Won’t Last
Date: June 21, 2022
A look at the day ahead in markets from Dhara Ranasinghe. Last week’s market turmoil that sparked the biggest weekly drop in world stocks since March 2020, has given way to a degree of calm. But don’t bet on it lasting. In short, until there are clear signs that inflation in major economies is coming...
Bank of England’s Mann Says Weak Pound Makes Case for Big Rate Hike
Date: June 20, 2022
By David Milliken and William Schomberg LONDON (Reuters) -The Bank of England should raise rates faster than it has so far because sterling’s weakness is adding to Britain’s inflation pressures, interest-rate setter Catherine Mann said on Monday. Mann – who voted unsuccessfully for a half-point increase in interest rates last week – said the U.S....
New ECB Tool Must Backstop Commitment to Euro – Villeroy
Date: June 20, 2022
PARIS (Reuters) – The European Central Bank’s planned instrument against financial fragmentation between euro countries must allow it to back up its commitment to defending the euro, ECB policymaker Francois Villeroy de Galhau said on Monday. At an emergency meeting last week, the ECB asked staff to speed up the design of an “anti-fragmentation” tool...
Will the Mighty Dollar Become a Problem?
Date: June 20, 2022
By Prof Nick Sargen, Darden School of Business At a time when both U.S. stocks and bonds have sold off significantly, the U.S. dollar has exhibited considerable strength against most currencies. Thus far, U.S. policymakers have not expressed concern about the dollar’s strength as it helps to temper high inflation. But it could become an...
Euro Rises With Focus on Ecb, Dollar Retreats
Date: June 20, 2022
By Samuel Indyk LONDON (Reuters) – The euro rose on Monday as markets focused on the European Central Bank’s tools to fight fragmentation in the currency bloc, looking through the risk of political gridlock in France for now after President Emmanuel Macron lost an absolute majority in the country’s parliamentary election. Macron’s Ensemble alliance secured...
Analysis-Nerve-racking Week Leaves Bond Investors Calling for Fast Rate Hikes
Date: June 20, 2022
By Davide Barbuscia and David Randall NEW YORK (Reuters) – A series of surprise actions by some of the world’s largest central banks fretting about runaway inflation has left bond investors battered. Now, a growing chorus of investors is calling on policymakers to move fast to end the uncertainty. Until central banks are able to...