As the Bank of England (BoE) prepares for its upcoming meeting, speculation looms large over whether the central bank will cut interest rates from their current 16-year high of 5.25%. With key policymakers remaining silent due to election rules, investors are left in the dark regarding the potential outcome of the decision. Interest rate futures
Economy
The recent surge in the yen has caught the attention of traders and investors alike, with the currency poised for its strongest week in nearly three months. This unexpected turnaround comes after a period of weakness, during which the yen hit 38-year lows against the US dollar. The sudden shift in momentum can be attributed
In response to the surprise lowering of lending benchmarks to boost economic growth, five major state-owned Chinese banks have taken the initiative to cut deposit rates. Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, China Construction Bank, Bank of China, and Bank of Communications have all announced varying reductions in their deposit
Currency markets have been turbulent recently, with commodity currencies hitting multi-week lows due to weakness in Chinese demand. The Australian dollar, New Zealand dollar, and Canadian dollar have all suffered losses against the U.S. dollar as Chinese growth figures fell short of expectations and surprise rate cuts were implemented. This has led to a ripple
India's recently unveiled 2024-25 budget seems to be an attempt by the government to address the challenges posed by a weakened job market and rural distress, which were highlighted as key factors in the BJP's recent election setback. The Finance Minister, Nirmala Sitharaman, has allocated a significant amount of funding towards job creation and rural
China's surprise decision to lower key short-term policy rates and benchmark lending rates came as a shock to markets around the world. The move signals the country's determination to counter the economic challenges it currently faces, including weaker-than-expected economic data, looming deflation, a property crisis, rising debt, and subdued consumer and business sentiment. The recent
China recently made an unexpected move by cutting both short and long-term rates by 10 basis points, signaling a shift towards supporting economic growth. This decision came shortly after the release of a policy document outlining the country's ambitions for the economy. The People's Bank of China reduced rates on its seven-day reverse purchase agreements,
Recently, Britain's new finance minister Rachel Reeves has indicated that she is considering approving inflation-busting pay increases for nearly 2 million government employees in an effort to prevent potential public sector strikes. This move comes in light of the recommendations made by two pay review bodies for wage rises of 5.5% for teachers and staff
Barcelona has recently announced plans to raise the tourist tax for cruise passengers visiting the city for less than 12 hours. Currently set at 7 euros per day, the tax will be substantially increased for stopover cruise passengers. The mayor of Barcelona, Jaume Collboni, stated in an interview with El Pais newspaper that this decision
Wall Street's main indexes took a hit recently due to a sell-off driven by tech stocks and mixed earnings reports. The sell-off was further intensified by a global cyber outage that affected CrowdStrike's shares, causing them to drop to an over two-month low. This incident had a domino effect on tech giant Microsoft as well,
Chinese consumer spending seems to be at a standstill, despite the numerous attempts by the government to encourage citizens to spend. With household deposits slowing down and banks reducing interest rates, one would expect an increase in consumer spending. However, data suggests otherwise. Chinese households saw a decrease in the amount of money deposited in
The World Trade Organization recently expressed concerns over China's lack of financial transparency in providing support to key industrial sectors. This lack of transparency makes it difficult for the WTO to have a clear picture of the extent of financial support given to industries such as electric vehicles and aluminum and steel production. Without this
The International Monetary Fund's chief economist, Pierre-Olivier Gourinchas, recently spoke with Reuters about the Federal Reserve's shift towards easing rates. He noted that the cooling inflation data is allowing the Fed to make a “very reasonable” decision in this regard. Gourinchas mentioned that while the U.S. labor market remains strong, there is no rush for
France's public finances are in dire straits, according to the national public audit office, Cour des Comptes. The staggering deficit figure of 154 billion euros has left the country dangerously exposed to potential economic shocks. This financial crisis comes at a delicate time for President Emmanuel Macron's government, following a parliamentary election that resulted in