Set to raise rates by 0.5% in Feb and March
Reuters reported that 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 by 0.5% […]
ECB’s Knot: “Expect us to raise rates by 0.5% in February and March … to not be done”
Dutch central bank governor and hence a European Central Bank Governing Council member, Klaas Knot, gave two separate interviews on Sunday. He said, when speaking with Dutch broadcaster WNL: “Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow […]
More from Harker: How high rates go will be shaped by inflation
> More from Harker: How high rates go will be shaped by inflation Fed’s Harker adds: How high rates go will be shaped by inflation. Sees rates going toward 5% ADVERTISEMENT – CONTINUE READING BELOW Tags ADVERTISEMENT – CONTINUE READING BELOW Most Popular ADVERTISEMENT – CONTINUE READING BELOW ADVERTISEMENT – CONTINUE READING BELOW Source link
What isn’t in sync are rates today? Yields.
The US stocks are bulled up today, with the Nasdaq leading the way in the major indices with a gain of 1.48%. The riskier stocks as measured by Cathy Woods ARK Innovation fund is doing even better with a gain of 2.85%. Typically, lower yields help that flow, but if you look at the US […]
More from the Feds Waller: Fed will have to keep rates high and not cut by year end
The Fed will have to keep rates high and not cut rates by the end of 2023 Market perception of terminal rate is not far from where we are Market expectations for rate cuts later this year is driven by optimism inflation will melt away The Fed does not expect inflation Inflation Inflation is defined […]
The Week Ahead – Earnings may reveal cost of high interest rates
EURUSD steadies over inflation relief The euro holds steady as inflation slows down. With prices of oil and gas falling back, Europe could put the much-daunted winter behind. Inflation effectively decelerated in the Euro zone in December, which would give policymakers some relief. Easing pressures have triggered expectations that the ECB might […]
The rates market thinks EUR/USD can get close to 1.20 – SocGen
Societe Generale Research sees a scope for EUR/USD to exceed its year-end target of 1.12. “Our end-2022 forecast for EUR/USD is 1.12, and we’re conscious that the currency is rising much faster than expected. If we could get our heads properly around the idea that the energy crisis is over despite the war in Ukraine […]
Australian housing finance (November) dribbling lower in the face of higher interest rates
The next Reserve Bank of Australia meeting is February 7 where analyst consensus is for a +25bp rate hike to take the cash rate to 3.35%. Market pricing is not totally on board with that extent of a hike though. I am: Anyway, Australian housing fiance data for November 2022: ADVERTISEMENT – CONTINUE READING BELOW […]
How the Fed is ‘collapsing’ real estate activity with higher interest rates
U.S. real estate has undergone a dramatic slowdown in transaction activity in the months since the Federal Reserve began jacking up interest rates. Sales of existing homes plunged from peak pandemic levels to about 4.1 million in November (see chart) from over 6 million units sold per year in 2021 as the Fed has dramatically […]
Fed’s Kashkari backs interest rate hikes ‘at least the next few meetings’
The Federal Reserve should keep raising its policy interest rate until it is confident inflation has peaked and that means interest rate hikes “at least at the next few meetings,” said Minneapolis Fed President Neel Kashkari on Wednesday. In an essay published on his regional bank’s website, Kashkari said that he has projected that the […]