The European Central Bank and Bank of England must keep raising interest rates to ward off the risk of causing “stagflation,” the prominent economist Nouriel Roubini warned. The famously pessimistic Roubini said the recent rise in oil prices will keep headline inflation high and that any talk of easier monetary policy would be premature. The … Read more
The European Central Bank raised interest rates for the ninth straight time in its yearlong campaign to stamp out painfully high inflation, even as worries about recession fuel speculation that Thursday’s hike could be its last. ECB President Christine Lagarde had all but promised the quarter-percentage point increase. That puts the focus at her post-meeting … Read more
“You can take any measure of that real inflation rate, it can be linked to the central bank’s rate versus the bond yields, it can be 10-year bond yield or you take any other measure we are just about going to hit the positive territory when it come to the interest rates,” says Mahantesh Sabarad, … Read more
The European Central Bank will increase scrutiny over how banks manage credit risk and diversify funding, it said on Monday while outlining its 2023 priorities as the euro zone heads into a likely recession and faces soaring borrowing costs. The 19-country currency bloc is facing the double whammy of sky-high inflation and a sharp economic … Read more
The dollar resumed its rise in Asia on Thursday after falling back from a two-decade high overnight, as investors pondered the path of global monetary policy ahead of a European Central Bank rate decision and comments from Federal Reserve Chair Jerome Powell later in the day. The U.S. dollar index, which measures the currency against … Read more
Mumbai: For mortgage lenders witnessing strong growth, the Reserve ‘s easing of overseas borrowing limits is of little help as historical restrictions on end use and, more importantly, demand for higher yields by overseas investors make external borrowing unviable for them. The necessity of an investment grade credit rating to tap the overseas market is … Read more
Asian stocks followed Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July. Helping to mellow the mood was news that Shanghai authorities will cancel many conditions for businesses to resume work from … Read more
The European Central Bank is likely to raise its deposit rate out of negative territory by the end of September and could lift it further if it sees inflation stabilising at 2%, ECB President Christine Lagarde said on Monday. “Based on the current outlook, we are likely to be in a position to exit negative … Read more
The head of the European Central Bank warned that high oil and gas prices are hitting consumers in the 19 countries that use the euro harder than in other major economies and underlined that the bank won’t add to the squeeze by raising interest rates anytime soon. Christine Lagarde‘s message that it’s “highly unlikely” the … Read more
Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them. 1 GERMANY‘S ‘MUTTI’ BOWS OUT Sunday’s German election is a close call and stakes for Europe’s biggest economy couldn’t be higher. After 16 years of steady, centre-right leadership, Chancellor Angela Merkel … Read more