FOMC: Tapering to Begin This Month at the Expected Pace
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday fulfilled expectations that tapering will get underway, starting the process this month while making no reference to the timeline of eventual liftoff other than the usual goals of maximum employment and 2% inflation. The policy announcement follows: With progress on vaccinations and strong policy support, indicators […]
BOJ Kuroda: Current ‘Slight’ Yen Fall Beneficial for Japan’s Economy
By Max Sato (MaceNews) – Bank of Japan Governor Haruhiko Kuroda said Thursday that the recent depreciation of the yen has been limited in scope, and thus it is still good for Japan’s gradual economic recovery as its benefit of supporting exporter profits outweighs the cost of surging import prices. He also downplayed the risk […]
FOMC Set To Taper In November Amid Mounting Inflation Worries
– Pace of Tapering Adjustable; Funds Rate Liftoff Timing Uncertain By Steven K. Beckner (MaceNews) – The fateful moment is nearly upon us – when the Federal Reserve at last starts trimming the aggressive bond buying it’s been doing to support a pandemic-weakened but rapidly recovering economy. Having prepared financial markets as much as it […]
BOJ Keeps Easing Stance; Covid Risk Remains, Public Inflation Views Picking Up
By Max Sato (MaceNews) – The Bank of Japan said Thursday it is maintaining its stimulative policy, as expected, to support economic recovery from the pandemic-caused 2020 slump and continue guiding near-zero inflation toward its elusive 2% target. The central bank remains optimistic about the medium-term outlook for steady recovery following short-term weakness, but also […]
Bank of Canada Sees Rate Hike in Mid-2022, Earlier Than Forecast Before
–BOC Brings Forward Rate Hike Timing From 2nd Half 2022 on Economic Pickup–BOC Revises Up 2022 CPI Forecast Sharply Higher, Slashes 2021 GDP Projection–Central Bank Keeps 0.25% Policy Rate As Expected But Ends Asset Purchases By Max Sato (MaceNews) – The Bank of Canada left its record-low policy interest rate unchanged Wednesday but revised its […]
ECB’s Monetary Policy To Stay On Course Despite Inflation Rise – BOI
By Silvia Marchetti ROME (MaceNews) – The European Central Bank’s monetary policy is expected to remain accommodative despite the “significant” but “temporary” rise in inflation across the eurozone, the Bank of Italy said in its Economic Bulletin released on Friday. According to the BOI “the significant rise in inflation is attributable to the increases in […]
ANALYSIS: Japan Faces Cost Inflation Amid Weak Yen, Slow Wage Growth
By Max Sato (MaceNews) – Rising energy and commodities prices may help lift Japan’s near-zero inflation rate but a further rise in the costs for daily necessities would dampen already wobbly consumer spending and surging producer prices would hurt small businesses that cannot pass higher input costs on to customers amid uncertain growth prospects. Japan […]
Fed’s Beige Book Sees ‘Significantly Elevated Prices’
WASHINGTON (MaceNews) – The Federal Reserve’s survey of economic conditions coast to coast Wednesday found “significantly elevated prices” and some regional Fed districts in which growth slowed, hampered by labor shortages, supply disruptions and, of course, the Delta variant. Auto sales declined and some districts “noted increased uncertainty and more cautious optimism than in previous […]
Bundesbank’s Weidmann Makes Surprise Announcement, to Step Down at Year End
— ECB Governing Council to Lose One Of Its Most Hawkish Rate Setters By Laurie Laird LONDON (MaceNews) – Jens Weidmann, president of Germany’s Bundesbank, will relinquish his position at the end of 2021, ridding the European Central Bank of one its most hawkish voices. Weidmann has asked German President Frank-Walter Steinmeier to “dismiss” him […]
BofA Global Research Fund Manager Survey: Increasingly Negative World Growth Outlook Prompt Former Bulls To Retreat in October
By Vicki Schmelzer — Record Underweight in Bonds On Rate Hike Jitters NEW YORK (MaceNews) – World growth expectations fell more markedly in October, prompting formerly bullish global investors to retreat, according to the findings of BofA Global Research’s monthly fund manager survey, released Tuesday. Growth expectations were weighed by fears of higher interest rates, […]