Reserve Bank Governor Shaktikanta Das on Tuesday said the central bank has a commitment to reducing inflation to a target of 4 per cent. Additionally, it will maintain a vigilant stance in monitoring potential risks, particularly as frequent global supply disruptions can significantly impact price management. Shaktikanta Das while delivering a lecture at the Delhi … Read more
Japan may be at an inflection point in its 25-year battle with deflation as price and wage rises show signs of broadening, the government said on Tuesday, signalling its conviction the economy was nearing an end to prolonged stagnation. The optimistic view echoes that of the Bank of Japan (BOJ), which has said corporate price- … Read more
Monetary policy — and interest rates — are near-synonymous. But going by the central bank’s surprise choice of price-taming instrument Thursday, they need not be so in the next few quarters. Whenever monetary authorities wanted to influence price levels for goods and services, they resorted to the popular tool — interest rates that make money … Read more
The Fed will likely pause any further hikes in interest-rate as inflation starts to cool down, Moody’s Mark Zandi said. Zandi said he’s confident inflation will drop to the Fed’s 2% target by May next year. The ongoing stress in the banking system and recession risks are also factors that might convince the Fed to … Read more
The Fed will finally cut interest rates in the fall, former PIMCO economist Paul McCulley predicted. That’s because banking turmoil will put credit in a “tight vise,” slowing the economy, he warned. Economists have flagged the risk of recession over the past year as the Fed aggressively hiked rates. Despite what Jerome Powell and the … Read more
Pakistan took the crown for Asia’s fastest inflation from Sri Lanka as a weaker currency and rising food and energy costs drove price gains to a record in April. Consumer prices rose 36.4% in April from a year earlier, the highest since 1964, according to data released by the statistics department Tuesday. That compares with … Read more
US inflation has steadily cooled since mid-2022, thanks to large interest-rate increases by the Federal Reserve. However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. The dollar index has fallen by more than 11% from a peak reached in late September. US consumers are … Read more
India’s wholesale price inflation slipped to a 22-month low of 4.95% in December 2022 from 5.85% in November, fostering hopes of further easing in the price rise faced by consumers, as producers may slow down the pass-through of input costs at the retail level. This is the second month in a row that wholesale inflation … Read more
The Bank of England warned on Tuesday about “significant pressure” on households and businesses due to higher inflation and borrowing costs, but said they were more resilient than before the global financial crisis. The BoE had previously flagged that Britain was entering a lengthy recession and, with inflation at a 41-year high and a sharp … Read more