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US real interest rates are likely to return to trend

Location:

INTERNATIONAL

Real interest rates -- which matter more for economic activity -- remain negative. Real rates have been declining for centuries. While they are currently negative, this could…

Fed/ECB strategies renew monetary policy for the 2020s

Location:

INTERNATIONAL

The changes aim to improve the efficiency of monetary policy in the environment of lower interest rates, inflation and growth, in which deflation, stagnation or recession are…

Mexico fuel price spike will have severe impact

Location:

MEXICO

Fuel price liberalisation.

Inflation and inequality to pressure Cuban government

Location:

CUBA

Price hikes for petrol, electricity, water and gas are among several adjustment measures that will drive up living costs, compounding already high inflation. Meanwhile…

Japan's GDP growth will settle after 'great reopening'

Location:

JAPAN

Exports are near all-time highs. Prices have risen solidly for three successive quarters, indicating that Japan's period of deflation and weakly rising prices may be ending.

Inflation expectations matter more than unemployment

Location:

INTERNATIONAL

The surge in inflation this year owes more to supply bottlenecks caused by the release of pent-up demand than to falling unemployment. In the decade before the pandemic, US…

Tight monetary policy to strengthen Mexican peso

Location:

MEXICO

Banxico justified the move as an attempt to curb inflationary expectations and eventually reduce inflation. It should also boost the peso, making the currency more attractive to…

Mexico stabilisation package should steady peso

Location:

MEXICO

The peso has fallen by 10.5% against the dollar since the start of this year, and the surprise move saw the currency react favourably as the announcement broke the dynamics of the…

Polish VAT surge may subside from mid-2018

Location:

POLAND

Budget data for the first ten months show revenue from value-added tax (VAT) exceeding the forecast by 22%. That could help narrow Poland’s 'VAT gap' -- the difference between…

Fed policy move will mean lower rates for even longer

Location:

UNITED STATES

The Fed reduced interest rates to 0-0.25% and almost doubled the size of its balance sheet to offset some of the impact of the COVID-19 pandemic on the US economy but clear signs…