Oil prices remained relatively flat on Thursday, recovering from earlier losses but still trading below Wednesday’s close. Brent crude futures edged down 3 cents to $73.36 per barrel, while U.S. West Texas Intermediate crude slipped 2 cents to $70.56 per barrel by mid-morning trading in London. Fed Signals Slower Rate …
Read More »Bank of Japan Holds Rates Steady but Signals Potential Tightening Amid Rising Inflation Risks
The Bank of Japan (BOJ) opted to keep interest rates unchanged at 0.25% during its final policy meeting of the year. However, a dissenting vote from board member Naoki Tamura highlighted growing divisions within the central bank regarding the timing of monetary tightening. Tamura, known for his hawkish stance, proposed …
Read More »BoE Poised for Cautious Monetary Policy Decision Amid Inflation Concerns
The Bank of England is set to announce its monetary policy decision early on Thursday. Governor Andrew Bailey has signaled that the central bank is likely to keep the main interest rate on hold, emphasizing a gradual approach to monetary easing. Despite this cautious stance, Bailey recently indicated that up …
Read More »Hawkish Fed Rhetoric Boosts USD/JPY
The Federal Reserve’s decision to cut its benchmark interest rate by 25 basis points to a target range of 4.25% – 4.50% sent shockwaves through the financial markets. While the rate cut was widely anticipated, the Fed’s surprisingly hawkish outlook for the future path of interest rates fueled a rally …
Read More »What’s New in the Fed’s December Interest Rate Statement?
There have been some notable differences between the interest rate statement released by the Federal Open Market Committee on Wednesday, following the 25 basis point rate cut, and the previous statement. The first key difference is that the latest statement alluded to the timing and scale of future policy moves, …
Read More »Fed’s Cautious Stance Dampens Stock Market Rally
The Federal Reserve’s decision to implement a 25-basis-point interest rate cut, while anticipated by market participants, has failed to sustain a significant rally in U.S. equity markets. The central bank’s economic projections, which signaled a more gradual pace of future rate reductions, tempered initial optimism and highlighted underlying concerns about …
Read More »Fed’s Hawkish Tone Weighs on Euro
The Euro weakened significantly against the US Dollar after the Federal Reserve’s interest rate decision and subsequent press conference. While the Fed delivered a 25 basis point rate cut as expected, the central bank’s cautious tone and economic projections dampened market sentiment for the Euro.Key takeaways from the Fed’s decision:Rate …
Read More »Powell Speech: Stronger Growth, Lower Unemployment Driving Slower Rate-Cut Path
In a recent post-meeting press conference, Federal Reserve Chairman Jerome Powell explained the decision to cut the federal funds rate by 25 basis points to the range of 4.25%-4.5%. The decision, taken after the December meeting, was driven by several factors including stronger economic growth and lower unemployment.Key Drivers Behind …
Read More »Key messages from last US interest rate statement in 2024
The Fed stated in its interest rate statement that “recent data have shown continued progress in economic activity. Labor market conditions have also shown significant improvement with the unemployment rate rising, although it has not reached very high levels. Inflation has shown a decline, approaching the central bank’s target of …
Read More »Fed cuts interest rate by 25 basis points as expected
The US Federal Reserve cut interest rates on Wednesday and signaled it will slow the pace at which borrowing costs fall any further given a relatively stable unemployment rate and little recent improvement in inflation. “Economic activity has continued to expand at a solid pace” with an unemployment rate that …
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