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ECB and Fed to delay rate cuts to sustain disinflation

Location:

EU/US

Disinflation is underway on both sides of the North Atlantic, but it is not yet deeply entrenched, giving both central banks a reason to delay cuts. The ECB must contend with…

Central bank policies diverge amid political strains

Location:

INTERNATIONAL

This creates a clear contextual divide, ahead of consequential European Parliament, US and UK elections in 2024. The inability of the central banks to forecast inflation or growth…

Euro-area design flaws will curb GDP growth and reform

Location:

EU

For critics, the euro-area imposes a one-size-fits-none approach to fiscal and monetary policy. While that applies also to the United States and China, given their regional…

Unknowns cloud major central banks’ forward guidance

Location:

INT

The Fed insists that subsequent moves will depend on economic developments, but its forecast implies that, although not imminent, another 25-basis-point (bp) increase will happen…

Renewed rate rises raise risk of more financial shocks

Location:

INTERNATIONAL

While headline inflation in the United States and the euro-area has fallen steadily, core inflation remains stubborn. The ‘last mile’ of the disinflation process will be the most…

The ECB will face a conundrum over its monetary policy

Location:

EU

The ECB lags behind other major central banks in raising rates; and inflationary pressures are stronger in the euro-area than the United States. This suggests that hopes that…

Central banks and traders' views on rates to clash

Location:

INTERNATIONAL

The main western central banks -- the Federal Reserve (Fed), the ECB and the Bank of England (BoE) -- have all stated clearly that it is too early to declare victory against…

Market turbulence and rising rates weigh on EU banking

Location:

INT

Doubts over three large European banks have driven down the stock prices of German and French banks even though the sector benefits from a comfortable return on equity, rising…

More negative-yield bonds raise euro-area bank risks

Location:

INTERNATIONAL

Negative yields.

The dollar will determine emerging market asset moves

Location:

INTERNATIONAL

Emerging market asset gyrations.