Tag Archives: tightening monetary policy

Gold is trading at $1945.45 at the time of writing, it is down by 0.60% at the time of writing as the stage is set for the major central banks in the world, particularly the Fed in the United States and the ECB in Europe.Economists and strategists point out how …

This week’s data and statements seem varied and relatively difficult to interpret, making the path for rate hikes more uncertain. Most analysts tend to believe that the ECB will halt in July, but do expect the Fed in the United States to deliver two more rate hikes before Q4, with …

According to an interview with James Bullard, president of the St. Louis Federal Reserve, raising interest rates even more would be a good “insurance” strategy against inflation, the Financial Times reported on Thursday.According to the Financial Times, Bullard stated that he will retain a “open mind” going into the next …

US consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government’s borrowing cap could trigger a recession. The University of Michigan’s survey also showed consumers’ long-term inflation expectations jumping this month to their highest reading since 2011, bad news for the …

The Bank of England raised its key interest rate by a quarter of a percentage point to 4.5% on Thursday and Governor Andrew Bailey said the British central bank would “stay the course” as it seeks to curb the fastest inflation of any major economy. The central bank is no …

Following a string of news stories that put pressure on crude prices, WTI is consolidating. Risk-off sentiment and business data cause crude to decline by more than 1%.After the United States reported that inflation in April fell for a tenth consecutive month, WTI crude is down on the day by …

Regarding rising interest rates, that appears to be the thinking going through the minds of Bank of England (BoE) policymakers. Despite persistent inflation and salary increases, the “Old Lady” has predicted a downturn. Accordingly, the Bank of England is expected to raise borrowing prices at its forthcoming ‘Super Thursday’ event, …

US Dollar suffered heavy losses against its rivals on Wednesday. Markets expect the Fed to pause its tightening cycle in June following the latest policy decisions. US Dollar Index holds above 101.00 but the bearish bias stays intact. The dollar continued to weaken against its rivals late Wednesday and the …

Following a fresh GDP report that exceeded expectations, stocks continued their upward trend on Thursday, with the Dow rising by almost 400 points. Following the widely anticipated Federal Reserve rate increase of 25 basis points on Wednesday, stocks experienced a small decline. The central bank also hinted through a revision …

In order to stop the tightening cycle, the Fed is predicted to raise rates by 25 basis points. In an unexpected decision, the Reserve Bank of Australia unexpectedly increased the cash rate. Tepid data raises the possibility of a recession as the US dollar enters the event in a weak …