Speedy US rate hikes raised the risk of recession, but it is likely to be caused by an outside shock rather than from the collapse of the American economy that remains robust according to statements by St. Louis Fed president James Bullard.Bullard said, at an economic forum in London, that …
Read More »BoE’s Pill expects important move in November
The Bank of England is expected to decide an important policy response to finance minister Kwasi Kwarteng’s financial plan embodying tax cuts but, the central bank could wait until its next scheduled meeting in November before making such a move according to BoE Chief Economist Huw Pill.The British pound gathered …
Read More »SNB’s Jordan doesn’t rule out more interest rate rises
Swiss National Bank (SNB) Chairman Thomas Jordan said on Friday that further rate rises cannot be ruled out, as reported by Reuters.The USD/CHF pair edged slightly lower on these comments and was last seen rising 0.42% on the day at 0.9808.Key Quotes “Swiss inflation has risen much more than expected, …
Read More »SNB hikes interest rates by 75 basis points
The Swiss Central Bank raised interest rates Thursday, September 22, by 75 basis points for the second time in a row during the third quarter of 2022, to levels of 0.5% from -0.25%. The rise came by 75 basis points to -0.25% on June 16, which was the first rate …
Read More »Fed’s Hawkish Stance Like Dancing On A Tightrope
Fed Chair Jerome Powell has said that “pain” could be required to suppress high inflation, implying that the Fed is willing to accept a recession in order to cool inflation. This is why Wednesday’s interest rate hike is more like dancing on a tightrope with a potential risk of dragging …
Read More »USD/CAD rallies ahead of FOMC’s decision
The USD/CAD pair is advancing, bolstered by high US T-bond yields and the dollar’s performance. Canada’s CPI rose below forecasts but is still above the 7% threshold.US housing data was mixed, though higher mortgage rates would likely continue to deteriorate the housing market.The USD/CAD also rises to fresh two-year highs, …
Read More »Lagarde expects to raise rates further
Christine Lagarde, President of the European Central Bank said that policymakers will not let this phase of high inflation feed into economic behavior and create a lasting inflation problem.“If there were evidence that high inflation risked de-anchoring inflation expectations, then the policy rate that is compatible with our target would …
Read More »Will the BoE raise interest rates at Thursday’s meeting?
The Bank of England (BoE) will have its monetary policy decision. Accord points to a 50 bps rate hike, but a 75 bps is not ruled out.However, analysts at Danske Bank expect fewer hikes than priced in markets as they emphasize the rising recession risk in the UK. On Thursday, …
Read More »Market Drivers – US Session 19/09/2022
The week has got a lot of volatility and most assets are in slow motion with an almost empty macroeconomic data. The UK was on holiday honoring the funeral of the late Queen Elizabeth II. Fifteen major central banks will announce their policy decisions later the week.Economic DataMonday’s U.S. economic …
Read More »IMF’s Georgieva: Central bankers must be stubborn in fighting inflation
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday that central bankers must be stubborn in fighting broad-based inflation, as reported by Reuters.“If fiscal policy is not targeted sufficiently, it may become the enemy of the monetary policy, fueling inflation,” Georgieva further added.These comments do not seem to …
Read More »