Time to be forceful? World market themes for the week ahead

Britain and Australia may opt for 50 basis-point rate hikes in coming days, given the high risk that markets will punish any central bank that hesitates to crack down on multi-decade high inflation.

European gas prices are up almost 200% so far this year and the longer this shock continues, the worse economies will fare. JPMorgan and HSBC are among those predicting a 50 bps move. While only three BoE policymakers favoured 50 bps at the last two meetings, data since then has shown inflation reaching 9.4%, a 40-year high. It could hit 12% by October - six times the BoE target.

Given the Fed now favours a data-dependent approach over explicitly guiding markets on policy, the jobs figures and other numbers due over the next eight weeks until the next Fed meeting, carry added importance. Latest data showed consumer prices climbing at a 6.1% annual pace, more than double the 2-3% target, and double the pace of wage growth. And Treasurer Jim Chalmers warns it will get worse before it gets better.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Industry Minister Champagne makes the case for EV investment at ‘right time’ for CanadaAfter wrapping up his latest international trade trip to Japan on July 8, having met with leaders from Honda, Nissan, Panasonic, Subaru and Toyota, the list of overseas automakers and battery companies with which François-Philippe Champagne has not recently shared a conference table is getting slim. How’s that investment going in Brampton / Windsor at Stellantis? You gave them money to help retool and now they are laying off workers and using taxpayers money to buy out workers. Yet they made 15 billion profit in 2021. They shouldn’t be laying anyone off using our tax $$$
Source: AutoNewsCanada - 🏆 77. / 51 Read more »