monetary-policy
Top StoriesShanghai Finds Cases After Five Days of ‘zero Covid’ but End of Lockdown on Track
BankingEgypt’s Central Bank, Citing Inflation, Hikes Interest Rates 200 Bps
Top StoriesAs ECB Pares Back Stimulus, Investors Alert for Fragmentation Risk
UncategorizedBy Dragon’s Rock, World’s Policymakers Plot How to Slay Stagflation
Investor Hedges Drive ECB Rate Hike Bets Beyond Forecasts
Date: May 18, 2022
By Stefano Rebaudo LONDON (Reuters) – Although economists have warmed to the idea of the euro zone’s deposit rate hitting 0% in 2022, most dismiss interest rate hikes of more the 100 basis points by year-end as excessive. However, interest rate futures suggest the European Central Bank’s (ECB) first rate hike since 2011 will likely...
ECB Policymakers Push for Quick Monetary Policy Normalisation
Date: May 18, 2022
By Jesús Aguado MADRID (Reuters) -The European Central Bank will likely start raising interest rates shortly after ending its bond-buying programme early in the third quarter, with the potential for further hikes in coming quarters, policymaker Pablo Hernandez de Cos said. His comments on Wednesday came shortly after fellow policymaker and Finnish central bank chief...
Euro Zone April Inflation Revised Down to 7.4%; Still a Record High
Date: May 18, 2022
FRANKFURT (Reuters) – Euro zone inflation held steady at a record high 7.4% in April, driven by soaring fuel and food costs, the EU’s statistics agency said on Wednesday, lowering its estimate from a preliminary 7.5%. Inflation has soared over the past year, first on post-COVID supply bottlenecks and latterly on knock-on effects from Russia’s...
European Shares Inch Lower on Inflation Worries
Date: May 18, 2022
By Susan Mathew (Reuters) -European shares slipped on Wednesday led by technology stocks, as worries about inflation and monetary policy tightening dampened optimism around China’s economic recovery. The pan-European STOXX 600 index fell 0.1% by 0820 GMT after rising 3.6% since Friday. Technology shares slipped 0.7%, while a fall in copper prices weighed on basic...
ECB’s Knot Says 50 Bps July Rate Hike Possible if Inflation Broadens
Date: May 17, 2022
AMSTERDAM (Reuters) – The European Central Bank should raise its key interest rate by 25 basis points in July but should not yet rule out a bigger increase, Dutch central bank chief Klaas Knot told Dutch TV programme College Tour. “The first interest rate hike is now being priced in for the monetary policy meeting...
The Dollar’s Primacy Will Not Be Threatened by Sanctions Against Russia
Date: May 17, 2022
By Nicholas Sargen, Darden School of Business Russia’s invasion of Ukraine poses one of the biggest challenges to the post-World War II order, and it could portend further problems ahead if the conflict is protracted, as General Mark Milley recently warned. Shortly after the invasion began, the United States and its NATO allies invoked sanctions against Russia...