British inflation is broadly declining in line with the Bank of England's forecasts, and next month's numbers look on track for a sharp drop towards the central bank's 2% target, Governor Andrew Bailey said on Wednesday. "We're actually pretty much on track for where we thought we would be," Bailey said at an event in Washington hosted by the Institute of International Finance. "I expect that next month's number will show quite a strong drop," he added. Official figures earlier on Wednesday showed annual consumer price inflation fell to 3.2% in March from 3.4% in February, a slightly...
Bank of Japan Governor Kazuo Ueda continued to cautiously hint that gradual progress is being made toward achieving the bank's inflation target, in a largely dovish policy message that leaves open the door as to when it may come time for normalization. "The likelihood of realizing the outlook for achieving the price stability target of 2 percent seems to be gradually rising," Ueda said in a speech Monday to local business leaders in Nagoya, Aichi Prefecture. However, as there are high uncertainties over wage growth and other factors, "sustainable and stable achievement of...
The Bank of England kept interest rates unchanged on Thursday, following the Federal Reserve and the European Central Bank. Like the Fed, the BOE is battling inflation that hasn't returned to its target despite a series of rate hikes. Between December 2021 and August this year, the U.K. central bank lifted borrowing costs at 14 straight meetings. Now, officials say they are taking a more cautious approach as they evaluate the effects of previous hikes. In September, headline inflation in the U.K. was 6.7%, more than three times the bank's 2% target. Price increases aren't slowing as...
Federal Reserve Chair Jerome Powell said additional evidence of strength in the labor market and above-trend economic growth could warrant "further tightening" of monetary policy. "We are attentive to recent data showing the resilience of economic growth and demand for labor," Powell said, signaling that December is a live meeting for an interest-rate increase if overall demand and hiring don't start to slow. "Evidence of growth persistently above potential, or the tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant...
The Federal Reserve held interest rates at a 22-year high for a second straight meeting, while suggesting that the recent rise in Treasury yields may weigh on the economy and inflation. "Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation," the US central bank's policy-setting Federal Open Market Committee said in a post-meeting statement published Wednesday in Washington, adding the word "financial" to language that previously referred only to credit conditions. "The extent of these...
The Bank of Japan adjusted its stimulus to allow long-term yields to edge higher while raising its inflation projections, moves that signal it is likely inching closer toward policy normalization. The yen weakened against the dollar. The BOJ will take a more flexible approach to controlling yields on 10-year government debt, according to its statement Tuesday. That marks a shift from a previous pledge to conduct daily bond buying operations at 1%, a stance that effectively drew a line in the sand at that level. The bank described 1% as a reference point in its latest...
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...