Fed’s words in focus as markets bet rate hikes will soon end
Jan 30 (Reuters) – U.S. central bankers have unambiguously telegraphed this week’s policy decision: a quarter-of-a-percentage-point increase in their benchmark interest rate, the smallest since they kicked off their tightening cycle 10 months ago with one the same size.Less clear is whether they will continue to signal “ongoing increases” ahead for the policy rate as […]
Consumer inflation in Japan’s capital hits near 42-year high, keeps BOJ under pressure
Jan Tokyo core CPI rises 4.3% yr/yr vs f’cast +4.2%Tokyo core-core CPI up 3.0% yr/yr in JanuaryData highlights mounting inflationary pressureGovt fuel subsidies to moderate price gains from FebruaryTOKYO, Jan 27 (Reuters) – Core consumer prices in Japan’s capital, a leading indicator of nationwide trends, rose 4.3% in January from a year earlier, marking the […]
Strong U.S. economic growth expected in fourth quarter, outlook darkening
Fourth-quarter GDP forecast to increase at a 2.6% rateStrong consumer spending seen; other sectors to contributeWeekly jobless claims expected to rise moderatelyWASHINGTON, Jan 26 (Reuters) – The U.S. economy likely maintained a strong pace of growth in the fourth quarter as consumers boosted spending on goods, but momentum appears to have slowed considerably towards the […]
U.S. inflation roller coaster prompts fresh look at long-ignored money supply
NEW YORK, Jan 26 (Reuters) – The amount of money sloshing around the U.S. economy shrank last year for the first time on record, a development that some economists believe bolsters the case for U.S. inflation pressures continuing to abate.The Federal Reserve’s main measure of the nation’s money stock – known as M2 money supply […]
Analysis: Wall Street heavyweights warn of pain ahead despite market’s recent reprieve
NEW YORK, Jan 25 (Reuters) – Some of Wall Street’s biggest names are throwing cold water on expectations that the U.S. economy will scrape through 2023 without a recession, even as hopes of easing inflation and resilient growth propel stocks higher.Banks and asset managers that have reiterated recession calls include BlackRock, Wells Fargo and Neuberger […]
Japan higher rates expand debt pile, balanced budget seen delayed again
Japan fiscal estimates assume higher interest rates than beforeBOJ’s move to widen 10-yr target band heaps pressure on ratesJapan seen to lag FY2025 budget balancing target by one yearTOKYO, Jan 24 (Reuters) – Japan raised its estimates for long-term interest rates over the coming few years in government’s twice-yearly fiscal projections issued on Tuesday, following […]
Japan’s factory activity extends declines for third straight month – PMI
TOKYO, Jan 24 (Reuters) – Japan’s manufacturing activity contracted for a third straight month in January as export weakness persisted amid a worsening global outlook, a corporate survey showed on Tuesday.The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) was at a seasonally adjusted 48.9 in January, unchanged from the final reading in […]
ECB policymakers spar on rate outlook beyond Feb hike
Knot, Kazimir explicitly back 50 bps hike in MarchLagarde sees significant, steady pace rate riseStournaras, Visco call for cautionInflation high but fallingFRANKFURT/PRAGUE, Jan 23 (Reuters) – European Central Bank policymakers laid out diverging views on future interest rate hikes on Monday, suggesting that moves beyond next week’s half a percentage point increase remain contentious.The ECB […]
Japan warns of dire finances as BOJ struggles to contain yields
Japan’s finances intensified severity to unprecedented pointRounds of extra budget, stimulus measures aggravate financesPublic finance is the cornerstone of a country’s trust – finminEconomic revival comes first before fiscal reform in long runParliament debate begins, all eyes on new BOJ governor nomineeTOKYO, Jan 23 (Reuters) – Japan’s finances are becoming increasingly precarious, Finance Minister Shunichi […]
ECB set to raise rates by 50 basis points in February and March, Knot says
AMSTERDAM, Jan 22 (Reuters) – The European Central Bank (ECB) is set to raise interest rates by 50 basis points in both February and March and will continue to raise rates in the months after, ECB governing council member Klaas Knot said in an interview with Dutch broadcaster WNL on Sunday.”Expect us to raise rates […]