EU economy expected to raise inflation forecast again. Central bank policymakers have said that the outlook for price growth in 2023 and 2024 remains unsure The ECB has underestimated how fast Eurozone inflation would rise this year.European Central Bank policymakers expect the central bank to raise its short-term inflation forecasts …
Read More »BoE’s Bailey: Factors Causing Inflation Temporary
Bank of England Governor Andrew Bailey said on Thursday that the supply chain problems causing inflation should be temporary.“The risk is that inflation expectations become embedded and we have a very tight labour market in the UK. Policy guidance is more hazardous to give in times of elevated uncertainty”, he …
Read More »Bundesbank Warns Of Overblown property Prices
Vice president of Bundesbank, Claudia Buch, said that almost 90% of German households expect property prices to keep increasing.Buch added that her team at the Bundesbank has come up with estimates of about 10% to 30% for price deviations from their fundamentals. Germany’s central bank warned Thursday about skewed valuations …
Read More »Fed To Kick Off Faster Taper Starting January
The US Federal Reserve will likely double the pace of tapering its monthly bond purchases from January to $30 billion, and wind down its pandemic-era bond buying scheme by mid-March, Goldman Sachs strategists said in a daily note on Thursday.The increased openness to accelerating the taper pace likely reflects both …
Read More »ECB’s Weidmann: Upside Risks Dominate in Germany and Eurozone
European Central Bank governing council member and Bundesbank head Jens Weidmann said on Wednesday that upside risks to inflation dominate in both Germany and the rest of the Eurozone. The flexibility of the PEPP should not be transferred to any other bond-buying programme, Weidmann continued, adding that the ECB should …
Read More »US Consumer Spending Consolidates Despite Spiking Inflation
US consumer spending powered ahead in October although the economy was confronted by the biggest and fastest inflation wave in 31 years, setting up the economy for a year-end growth spurt.Purchases of goods and services, unadjusted for changes in prices, increased 1.3%, the most since March, following a 0.6% gain …
Read More »US Economic Growth Rises In Q3
The U.S. economy expanded at an annual 2.1% pace in Q3 instead of 2.0% according to revised government data. Economists were expecting a reading of 2.2%, according to a Wall Street Journal poll. Consumer spending and private inventory investment mostly accounted for the upward revision, the Commerce Department said Wednesday. …
Read More »BoC Raises Concerns Over Inflation
Canadians high household debt levels are becoming a persistent concern despite the massive fiscal support offered by the federal government during the COVID-19 pandemic according to statements by a senior Bank of Canada official, Tuesday.Deputy Governor Paul Beaudry said the prevalence of highly indebted households, which are defined as those …
Read More »Treasury Yields Higher As Fed Expected To Act On Inflation
US Treasury yields edged higher in uneven trading in a holiday-shortened week on Tuesday as investors prepared for the Federal Reserve to become more aggressive in fighting inflation after Biden nominated its chair Jerome Powell for a second term. The yield on 10-year Treasury notes was up 3.1 basis points …
Read More »Haskel: BofE Should Be Watchful On Labour Costs
Policymaker Jonathan Haskel indicated, Tuesday, that the Bank of England needs to be watchful about rising labour costs as a tight job market means wages might rise faster than productivity and put upward pressure on inflation.BoE Governor Andrew Bailey says interest rates are likely to rise and investors see a …
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