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Interest Rates

US Disinflation Stalls, Highlighting Tough Road Ahead

US inflation likely remained stagnant in October, highlighting the uneven pace of easing price pressures as the Federal Reserve aims to return inflation to its target, reports Bloomberg. The core consumer price index (CPI), which excludes food and energy, is projected to have risen at the same pace on both

Fed Cuts Rates But Trump's Re-Election Casts Shadow Over Future Policy

The Federal Reserve on Thursday lowered interest rates by a quarter percentage point, marking the second consecutive rate cut as the central bank continues to support the US economy. However, the re-election of Donald Trump, known for his criticism of the Fed and his potential to influence monetary policy, has

Japan Intervened Twice in Third Quarter to Prop Up Yen

The Japanese government intervened in the foreign exchange market twice during the third quarter, spending a combined ¥5.54 trillion ($36.4 billion) to support the yen, reports Bloomberg. The interventions, carried out on July 11 and 12, were aimed at stemming the yen's slide against the dollar,

Bank of England Cuts Rates, But Sees Higher Inflation After Budget

The Bank of England (BoE) cut interest rates on Thursday for only the second time since 2020, but signaled that future reductions would be gradual, citing the impact of the new government's first budget, reports Reuters. The Monetary Policy Committee voted 8-1 to lower rates to 4.75%

BOJ Expected to Keep Rates Steady

The Bank of Japan (BOJ) is set to maintain its ultra-low interest rate policy at its upcoming meeting on October 30-31, but may signal a less dovish stance, reports Reuters. This shift could be driven by receding fears of a US recession and the need to prevent further yen depreciation.

UBS: US Dollar Strength a Selling Opportunity, Weakness Set to Return

Despite the US dollar's recent surge to a two-month high, UBS remains steadfast in its view that the currency is headed for a downturn. In a note published Wednesday, the Chief Investment Office of the Swiss bank suggests investors to capitalize on current strength to reduce exposure. The

ECB Policymakers Shift Focus to Inflation Undershoot Risk

In a noticeable shift in tone, European Central Bank (ECB) policymakers are increasingly expressing concern over the risk of inflation falling below their 2% target, reports Reuters. This comes after years of grappling with excessively high inflation. While eurozone inflation dipped to 1.7% last month and is projected to

Private Credit in Australia Booms as Interest Rates Rise, Banks Retreat

Australia's burgeoning private credit market is experiencing a surge of interest from institutional investors seeking higher returns amidst rising interest rates and a cautious banking sector, reports Bloomberg. This trend is driven by the attractive yields offered by private credit funds, which have become a compelling alternative to

Fed Walks Tightrope Between Growth and Inflation

The Federal Reserve finds itself at the crossroads of satisfying Wall Street's desires and adhering to its dual mandate of maximum employment and 2% inflation. Recent developments and statements from Fed officials have highlighted the complexities of this balance. The September Rate Cut and Its Aftermath In September,

Japan's Central Bank Can Raise Rates, But Will Proceed Cautiously, Says Dovish Policymaker

Fears of a rapid tightening of monetary policy in Japan are receding, as a dovish member of the Bank of Japan (BOJ) board, Asahi Noguchi, reiterated on Thursday that future rate hikes would be slow and cautious. As reported by Reuters, Noguchi said the BOJ has room to raise interest