monetary-policy
Top StoriesPoland Not Near End of Rate Hike Cycle, Says Central Bank Head
Top StoriesBoE’s Pill Says UK Must Accept Income Hit From High Inflation
InvestingU.S. Rate Outlook Hits Stocks, Propels Dollar to 20-year Highs
TradingSterling Hits New Lows Against Dollar and Euro After BoE
Global Gloom Sets European Shares for Worst Week Since March
Date: May 6, 2022
(Reuters) -European stocks were on course for their worst week in two months on Friday following a carnage on Wall Street as investors feared that bigger interest rate hikes would be needed to tame decades-high inflation. The pan-European STOXX 600 index fell 1.6%, with retailers suffering the biggest loss among sectors. Europe’s retail index slumped...
ECB Rate Should Be Back in Positive Territory by Year End: Villeroy
Date: May 6, 2022
FRANKFURT (Reuters) -The European Central Bank should raise its deposit rate back into positive territory this year, French central bank chief Francois Villeroy de Galhau said on Friday, comments that point to his support for at least three rate hikes in 2022. The ECB has been moving slowly to remove support this year but record...
Take Five: The Tightrope Trick
Date: May 6, 2022
How to dampen inflation without slamming the brakes on growth? That’s the tricky job central banks face. But as others grapple with soaring prices, we will see how hard China’s COVID lockdowns are snarling up trade and slowing its economy. And another complication — M&A deals worth over $400 billion are waiting for financing, but...
Dollar Index Hits 20-year High, Sterling Tumbles on Dovish BoE
Date: May 5, 2022
By Karen Brettell NEW YORK (Reuters) – The dollar hit a 20-year high against a basket of currencies on Thursday as a sharp stocks selloff boosted demand for the safe-haven currency and as the Federal Reserve was seen as tightening monetary policy more than peers. Stocks tumbled on Thursday as investors fretted the Fed might...
Euro Zone Yields Rise, Tracking Moves in U.S. Treasuries
Date: May 5, 2022
By Stefano Rebaudo and Yoruk Bahceli (Reuters) -Euro zone borrowing costs were up on Thursday as a jump in U.S. Treasury yields the day after the Federal Reserve policy meeting outweighed dovish signals from the Bank of England. The yield on 10-year Treasury notes was up 13 basis points to 3.074% following a volatile day...
BoE Flags Risk of Recession and 10% Inflation as It Raises Rates Again
Date: May 5, 2022
By David Milliken, William Schomberg and Andy Bruce LONDON (Reuters) -The Bank of England sent a stark warning that Britain risks a double-whammy of a recession and inflation above 10% as it raised interest rates on Thursday to their highest since 2009, hiking by quarter of a percentage point to 1%. The pound fell by...