In the next week or so, borrowing costs will be set for seven of the world’s 10 most-traded currencies — including the dollar and the euro — with a picture of prolonged policy constriction set to emerge.
No matter what option President Christine Lagarde and her colleagues go for, an arguably tougher challenge will be to convince financial markets that they will keep policy tight as long as needed to tame prices even as economic growth falters. In place of concerns about inflation before August, the monetary policy committee is growing increasingly worried about recession. Five of the committee’s nine members have hinted that interest rates at 5.25% are high enough, or almost there.
Ueda told the Yomiuri newspaper in an interview published Saturday that it’s possible the Bank of Japan will have enough information by year-end to judge if wages will continue to rise — a key factor in deciding whether or not to pare back its super-easy policy. That was enough to send the yen higher against all Group-of-10 currencies on Monday.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »