Central Banks: Latest News and Analysis

Stay up to date with all the latest news on central bank decisions.

Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

S&P Global has pushed back its forecast for the first Federal Reserve rate cut to December 2024, citing persistent inflation and unexpectedly strong economic data. This delay in easing monetary policy raises concerns about elevated credit risks in the US and potential spillover effects on other economies, particularly
Delayed Fed Rate Cuts Raise Credit Risks and Spillover Concerns, S&P Global Warns

Jobs Report Fuels Market Optimism: UBS

The weaker-than-expected April jobs report has sparked optimism for a soft landing in the US economy, prompting UBS to reiterate its positive outlook for quality bonds and quality stocks. Friday's report showed a smaller-than-anticipated increase in employment growth, alongside moderating wage growth and a slight uptick in the

Advanced Economies Navigate Away from Immediate Stagflation Threat: BNY Mellon

Despite concerns over recent economic data, advanced economies appear to be moving away from the immediate threat of stagflation, according to a new report by BNY Mellon. The report highlights positive trends in real wage growth and productivity, suggesting a more favorable economic environment compared to the previous year. The

US Economy Shows Signs of Cooling, But Stubborn Inflation Keeps Fed on Hold

The US economy is exhibiting signs of moderation, with a still-robust but cooling labor market and persistent inflation pressures, according to a research report by Wells Fargo. This dynamic supports the Federal Reserve's patient approach to monetary policy, as the central bank opted to keep interest rates unchanged

Slower Rate Cuts Expected Across Asia-Pacific and Emerging Markets

The prospect of delayed US interest rate cuts by the Federal Reserve is poised to have significant implications for monetary policy and exchange rates across Asia-Pacific (APAC) and emerging markets (EMs), according to a recent report by S&P Global. Asia-Pacific: Slower Pace of Rate Reductions Central banks in

S&P Global Pushes Back Fed Rate Cut Expectations

S&P Global has revised its forecast for the Federal Reserve's interest rate path, delaying the anticipated timing of the first rate cut to December 2024. This shift in expectations, driven by persistent inflation exceeding the Fed's target, could have significant spillover effects on global
S&P Global Pushes Back Fed Rate Cut Expectations

Asian Central Banks Face Currency Weakness as US Dollar Strengthens

Central banks across Asia are grappling with the challenge of weakening currencies as the US dollar continues to strengthen, complicating their path towards easing monetary policy. The resilience of the US economy and expectations for delayed Federal Reserve rate cuts have fueled the dollar's rise, putting pressure on
Asian Central Banks Face Currency Weakness as US Dollar Strengthens

UBS Expects Soft Landing

Despite recent market volatility and concerns over persistent inflation, UBS remains confident in its base case scenario of a "soft landing" for the US economy, according to the bank's latest daily report. UBS anticipates a cooling of both economic growth and inflation, paving the way for

Central Banks Fuel Record-Breaking Gold Demand: World Gold Council

Central banks worldwide continued their strong appetite for gold, setting a new first-quarter record for net purchases, according to the latest report by the World Gold Council. Global official gold reserves grew by a net 228 tonnes in Q1 2024, surpassing the previous Q1 record set in 2013 and marking
Central Banks Fuel Record-Breaking Gold Demand: World Gold Council

Euro Zone Debt-to-GDP Ratio Declines, but Concerns Remain

The aggregate debt-to-GDP ratio in the Eurozone improved in 2023, declining to 88.6% from 90.8% the previous year, per data released by Eurostat. This marks a step towards pre-pandemic levels, when the ratio stood at 84% in 2019. However, the ratio remains significantly higher than its historical norm