A very large number of European Central Bank members agreed at the last meeting that it is appropriate to raise interest rates by 50 basis points, as suggested by chief economist Philip Lane, according to the minutes of the meeting released today. As mentioned, the increase by 50 m.v. was deemed justified due to the […]
Tag: Interest Rates
Traders now see an increase in ECB interest rates by 1%
Traders are raising bets that the European Central Bank will resort to more aggressive measures to tame inflation as the euro zone faces record energy prices following Russia’s war in Ukraine. In particular, as reported by Bloomberg, based on swaps linked to the dates of ECB decisions, the market now expects the Bank to raise […]
El Erian: Powell has a chance to fix Fed and markets disconnect
In a critical week for US stocks, Fed Chairman Jerome Powell has an opportunity to get investors on board with the Fed’s agenda to reduce inflation, which is likely to hurt economic growth. in the short term, argued renowned economist Mohamed El Erian. In particular, speaking to CNBC yesterday, Allianz’s chief financial advisor said that […]
JPMorgan sees last big Fed rate hike in September
The U.S. Federal Reserve is likely to make its last major rate hike in September, paving the way for stocks to continue their rally in the second half, analysts at JPMorgan Chase said. “We expect another giant Fed hike in September, but after that we see the Fed not surprising markets again, on the hawkish […]
The resistance to the rise in interest rates on business loans
By Leonidas Stergiou Cheap deposits, the end of negative interest rates by the ECB and strong demand in business loans, which generate the largest volume and value of new NPL production for banks, are the three main reasons holding down funding costs for businesses in a rising interest rate environment. The reasons for the containment […]
Citi: Markets are seeing a message from the Fed that ‘simply isn’t there’
The US Federal Reserve is more determined than markets think to curb inflation, Citigroup warns. With the market digesting the minutes of the Fed’s last meeting in July, Citi economist Andrew Hollenhorts believes the widely held conclusion that the central bank is preparing to slow its rate hikes is wrong. “Risk markets seem determined to […]
Turkey: Interest rates suddenly cut despite record 80% inflation
Turkey’s central bank surprised markets by cutting its key interest rate by 100 basis points, despite inflation running rampant in the country at close to 80%. In particular, Turkey’s central bank’s benchmark interest rate, which had been at 14% for the past seven months, fell to 13%, following a completely opposite path to that followed […]
New Zealand: Central bank raises key interest rate by 50bp to 3%
New Zealand’s central bank, as expected, raised its key interest rate by 50 basis points and said it would continue to tighten monetary policy, at least to the 4% level. The bank’s moves bring the Oceanian country to the forefront of the global tide of monetary policy tightening. The Monetary Policy Committee decided to raise […]
Eurozone: Recession the main scenario of the analysts now
The risk of a recession in the euro zone is now at its highest level since the pandemic hit in November 2020, as the energy crisis threatens to further push up record inflation, according to economists polled by Bloomberg. In particular, the probability of GDP contraction in two consecutive quarters – the technical definition of […]
China: Surprise rate cut after disappointing consumption and factory data
China’s central bank cut key lending rates today in a surprise move to boost demand after data showed the country’s economy unexpectedly slowed in July, with industrial activity and retail trade under pressure from policy zero Covid and the crisis in the real estate market. In particular, the numbers showed that the world’s second-largest economy […]