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 […]
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 […]
Gold gains on softer dollar, slower Fed rate-hike bets
U.S. weekly jobless claims data due at 1330 GMTGold benefiting from flight to safety after U.S. data – analystU.S. producer prices fall more than expected in DecemberJan 19 (Reuters) – Gold prices rose on Thursday and are set to snap a three-day losing streak, helped by a weaker dollar and as signs of cooling U.S. […]
Gold back up above $1,900 level as dollar loses ground
Jan 18 (Reuters) – Gold reversed course to trade higher on Wednesday as the U.S. dollar pulled back from session highs and expectations of a slower pace of Federal Reserve rate hikes supported prices above the $1,900 threshold.Having dipped in the last two sessions, spot gold rose 0.5% to $1,917.26 per ounce by 1254 GMT, […]
Household wealth optimism collapses, global survey shows
Jan 16 (Reuters) – Barely two in five people believe their families will be better off in the future, according to a regular global survey that also identified growing levels of distrust in institutions among low-income households.The Edelman Trust Barometer, which for over two decades has polled the attitudes of thousands of people, found that […]
Analysis: Bank of Japan’s yield curve control in danger as policy backfires
BOJ’s hope to buy time with wider yield band backfiresBoard to debate market distortions at Tuesday-Wednesday meetingMany in BOJ prefer to stand pat, some open to tweak – sourcesDec inflation seen hitting 4.0%, more pressure for BOJTOKYO, Jan 16 (Reuters) – The Bank of Japan (BOJ) is under pressure to change its interest rate policy […]
U.S. December deficit quadruples as outlays grow, debt ceiling nears
WASHINGTON, Jan 12 (Reuters) – The U.S. government’s December budget deficit quadrupled from a year earlier to $85 billion as receipts shrank slightly and outlays grew to a new December record, the Treasury Department said on Thursday as it neared the $31.4 trillion federal debt limit.The results confirmed forecasts that revenues would start to ease […]
China consumer inflation accelerates in Dec; PPI falls with soft demand
BEIJING, Jan 12 (Reuters) – China’s annual consumer inflation rate accelerated in December, driven by rising food prices even as domestic demand wavered amid restrained economic activity.Economists expect inflation to continue to pick up in the first quarter of 2023.The consumer price index (CPI) in December was 1.8% higher than a year earlier, rising faster […]