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
Any thoughts that the 2% inflation goal long sought by the U.S. Federal Reserve and the European Central Bank might possibly be in for a tweaking were dashed on Friday by the chiefs of the two institutions. Gathering in Jackson Hole, Wyoming for the annual Federal Reserve Bank of Kansas City economic symposium, both Fed … Read more
MUMBAI – Short-term corrections notwithstanding, the longer trajectory for Indian equities remains positive as the country is economically better positioned compared to most other world economies, believes market expert Anand Varadarajan. “India fares better than most large economies in various macroeconomic indicators, including inflation, monetary policy, GDP growth, financial market stability etc. These factors will … Read more
Bringing down inflation and stabilising inflation expectations will revive consumer spending, boost corporate revenues and profitability, which is the best incentive for private capex, the Reserve Bank of India said in its State of the Economy report, stressing upon the need for a “continuous vigil” on price movements. “It is axiomatic that the path to … Read more
After the RBI MPC paused monetary tightening in April 2023, although attempting to reinforce that the pivot is way off, the markets are bracing for the onset of the rate cuts sooner rather than later. The softer than expected inflation (particularly the recent moderation seen in the seasonally adjusted core inflation), above 1% real policy … Read more
Retail inflation at a 18-month low may be comforting for investors, but the central bank’s MPC when it meets in June will have its plate full – the sudden reversal by the Australian central bank, an unlikely softening by the Fed and domestic farm prices. Driven largely by base effect, headline retail CPI inflation is … Read more
Mumbai: Yields on the 10-year sovereign bonds Wednesday plunged to a 13-month low on expectations that the US Federal Reserve will go easy with its monetary policy choices in response to the emerging economic hardships in the world’s biggest economy. Yield on the Indian 10-year benchmark government bond slid 8 basis points to close at … Read more
Gold closed with a weekly loss of 1% at $1982.89. The metal was hammered lower Friday on better-than-expected S&P US global PMIs data. Repeated attempts to take out stiff resistance at $2020 have failed, which makes gold somewhat vulnerable in the near-term. S&P global manufacturing PMI preliminary data for April showed that the US manufacturing … Read more
Earnings season gets into full swing, while the first snapshot of business activity in April could provide a sense of how much pain the turmoil in the banking sector has inflicted on the world economy. China and Britain release key economic data and officials from the Group of Seven nations talk climate goals. Here’s a … Read more
Minneapolis CNN — US Treasury Secretary Janet Yellen said she believes the American economy remains strong and its banking system is resilient despite some recent turmoil among regional financial institutions. “I’ve not really seen evidence at this stage suggesting a contraction in credit, although that is a possibility,” Yellen said at a press conference Tuesday … Read more