ECB Raises Key Rates by 50 Basis Points, Deviating from Forward Guidance
–Approval of Anti-Fragmentation Tool Allowed Front-Loaded Tightening, Says President Christine Lagarde –Lagarde does not provide forward guidance, says ECB data-dependent By Laurie Laird LONDON (MaceNews) – The European Central Bank raised interest rates by a much-higher than expected 50 basis points following its governing council meeting on Thursday, deviating from the carefully-worded forward guidance issued […]
Bank of Canada Jacks Up Rate by 100 Bps to 2.5% as Bank ‘Front-loads’ Rate Hikes
–BOC: Interest Rates Need to Rise Further, Pace Up to Economic Assessment –BOC: Canadian Economy in Excess Demand, Inflation High and Broad –BOC Revises Up CPI Forecasts for Next Few Years, Sees Slower GDP Growth By Max Sato (MaceNews) – The Bank of Canada on Wednesday surprised the markets by jacking up its policy interest […]
Japan June Producer Inflation Eases Slightly on Slower Lumber, Steel Gains; Fuels Pick Up Again
By Max Sato (MaceNews) – Producer inflation in Japan eased slightly in June after hitting a 41-year high in April as year-on-year gains in the costs for lumber and wood products as well as iron and steel slowed, while the prices of gasoline and other fuels picked up the pace of increase again, data released […]
BOI’s Visco: Second Rate Hike in September ‘Appropriate’ if Long-Term Inflation Forecasts Do Not Improve
ROME (MaceNews) – Bank of Italy Governor Ignazio Visco said on Friday that a second rate hike in September by the European Central Bank could be “appropriate” if long-term inflation forecasts do not improve. Talking at Italy’s annual banking lobby ABI conference, Visco argued, however, that monetary policy normalization, particularly including any additional rate hikes […]
Japan May CPI Annual Rate Remains Above 2% on Fuels, Food, Appliances
By Max Sato –Core CPI +2.1% Y/Y for May, April Largest in Over 13 Years If 2014 Sales Tax Hike Impact Excluded–Total CPI +2.4% Y/Y for May, April Largest in Over 30 Years Excluding Impact of 2014, 1997 Sales Tax Hikes–Pace of Energy Price Rise Slower; Household Durable Goods Prices on Uptrend (MaceNews) – Consumer […]
<strong>Powell: Rates Must Rise To “Restrictive” Levels to Curb Demand, Inflation</strong>
– Still Hopes For ‘Soft Landing’ but Achieving It ‘More Challenging’ By Steven K. Beckner (MaceNews) – Federal Reserve Chair Jerome Powell said Wednesday that he and his fellow monetary policy-makers must continue to raise short-term interest rates into “restrictive” territory to validate financial market expectations and successfully fight inflation. Powell, testifying on the Fed’s […]
Japan Govt Keeps View Economy Showing Signs of Pickup as Eased Covid Rules Prop Up Sentiment
By Mas Sato (MaceNews) – Japan’s government Monday maintained its economic overview for June after upgrading it in April as the drag from the pandemic appears to have waned while continuing to warn about the impact of the protracted Ukraine war, Covid restrictions in China, supply bottlenecks and fluctuating financial markets, according to its monthly […]
Italy Backs ‘Gradual, Flexible’ Monetary Policy Normalization, Urges ECB to Avoid ‘Hawkish’ Message – Italian Government Sources
By Silvia Marchetti ROME (MaceNews) – Italy is warning against a sudden unwinding of Eurozone monetary policy accommodation and calling for a ‘gradual’ but ‘flexible’ normalization process, according to ruling coalition sources. “It is a very delicate moment for the European Central Bank, and it is paramount to avoid having to exit and then re-enter […]
Japan May Exports Post 15th Straight Y/Y Rise on Reopening Demand for Steel, Electronic Parts
–Imports Hit Fresh Record High on High Energy Costs, Leading to 10th Straight Trade Deficit –Exports to China Mark 2nd Straight Y/Y Drop on Covid Lockdowns By Max Sato (MaceNews) – Global reopening demand for iron and steel and semiconductors continued driving Japanese exports to surpass year-earlier levels for the 15th month in a row […]
<strong>BOI Cuts Italy ’22-’23 Growth on Ukraine Effects But Sees Recovery Signals As Investment Set To Rise</strong>
By Silvia Marchetti ROME (MaceNews) – The Bank of Italy on Friday cut country growth forecasts for 2022-2023 on fallout from the war in Ukraine and energy price hikes, but sees ‘robust’ signs of recovery as government aid to struggling families and European Union-wide pandemic investments start to bear fruit. GDP growth is now projected […]