The European Central Bank held interest rates steady for a fifth meeting, while sending its clearest signal yet that cooling inflation will soon allow it to commence cuts. The deposit rate was left at a record-high 4%, as overwhelmingly predicted by a Bloomberg poll in which only one of 62 economists saw a decrease. But the Governing Council added wording to its accompanying statement flagging a reduction, should updated economic forecasts in June signal sufficient space to do so. "If the Governing Council's updated assessment of the inflation outlook, the...
Australia's top central banker again projected further interest rate rises in coming months and said the pain was worth bearing to bring inflation down. Speaking before members of parliament for the second time this week, Reserve Bank of Australia (RBA) Governor Philip Lowe said the extent of further interest rate rises would depend on the global economy, household spending and the outlook for inflation and the labour market. "Based on the currently available information, the (RBA) Board expects that further increases will be needed over the months ahead to ensure that inflation returns to...
Australia's central bank chief Philip Lowe acknowledged interest-rate rises are unpopular, while adding he finds it "unfair" that blame for them is directed solely at him, as he reiterated plans to serve out his term. "It's the job of the central bank to control inflation," the Reserve Bank governor told a senate panel in Canberra Wednesday, in his first public remarks of the year. "I find sometimes that it's all sheeted down to me and that's a bit unfair because it's the board." Lowe said the nine-member board collectively takes policy decisions each month, based on the advice...
Bank of England interest rate-setter Jonathan Haskel said the BoE should be "really, really careful" about the risk of high inflation becoming embedded and he would watch data closely in the coming months given the high levels of uncertainty. "What I would prefer to do is make policy with much more attention on the data flow over the next few months," Haskel said in an interview published by website The Overshoot on Monday. Haskel, an external member of the Monetary Policy Committee, said last week he remained ready to "act forcefully" against persistent inflation, a phrase dropped by the...
Australia's central bank boosted its forecast for core inflation this year and is trying to ensure the economy avoids a wage-price spiral, underscoring the need for even higher interest rates. The Reserve Bank predicted trimmed mean inflation at 6.25% in the year-ended June, up from 5.5% previously, its quarterly Statement on Monetary Policy showed Friday. The measure is then likely to ease to 4.25% in December. Wages are expected to climb above 4% in June and peak at 4.25% later this year. "Inflation in Australia is too high and is broadly based," the RBA said. "Given the...
Bank of England Governor Andrew Bailey and his colleagues noted the risks that inflation remain well above the UK's 2% target for some time. In testimony to the Treasury Committee in Parliament on Thursday, Bailey said he expects inflation to fall sharply this year, but there are risks around that forecast. Lawmakers on the panel quizzed members of the nine-member Monetary Policy Committee about why they allowed inflation to soar to a 41-year high of 11.1% last year. Following are the key developments from the hearing. Times posted are for London. Bailey Says UK May Have...
Federal Reserve Chair Jerome Powell said the central bank is prepared to tighten policy further if appropriate.
"We will make decisions about the extent of any additional policy and how...
Even before U.S. inflation data on Wednesday came in hotter than expected, Federal Reserve officials had begun worrying last month that progress might have stalled and a longer period of tight...