Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Morning Bid: Turning the corner in the inflation fight

Morning Bid: Turning the corner in the inflation fight

Morning Bid: Turning the corner in the inflation fight

A look at the day ahead in European and global markets from Rae Wee

Central bankers across the globe are finally showing increasing confidence that markets may be entering an era of lower rates, after victory over inflation proved elusive for a long time.

The Reserve Bank of New Zealand (RBNZ) said on Wednesday at the conclusion of its policy meeting that headline inflation is expected to return to within the 1% to 3% target range in the second half of this year – a markedly less hawkish tone than what was conveyed in May.

Traders wasted no time in ramping up bets for rate cuts in New Zealand later this year, which in turn sent the kiwi sliding some 0.7%.

The RBNZ decision comes a day after Federal Reserve Chair Jerome Powell said in remarks to Congress that the U.S. is “no longer an overheated economy” with a job market that has cooled from its pandemic-era extremes, even though he provided little clues on how soon an easing cycle could commence.

Still, the market pricing of an over 70% chance of a Fed cut in September has come a long way from a near-even chance a month ago, based on the CME FedWatch tool.

Powell returns to Capitol Hill later on Wednesday to testify before the House Financial Services Committee, though focus will likely be on Thursday’s U.S. inflation report.

A surprise spike there could throw the case for rate cuts into doubt.

Japan, meanwhile, remains an exception to the rate-cut story, with an acceleration in the country’s wholesale inflation in June keeping alive market expectations for a near-term rate hike by the central bank.

The Bank of Japan will likely trim this year’s economic growth forecast in July but project inflation will stay around its 2% target in coming years, sources told Reuters.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Rates aside, data on Wednesday showed China’s consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, as anaemic domestic demand continues to plague the world’s second-largest economy despite Beijing’s support measures.

China’s retailers have discounted goods, from cars to coffee, as they navigate through sluggish consumer spending amid a shaky economic outlook.

The downbeat data did little to help the yuan, which on Wednesday again fell to its weakest level since November.

Key developments that could influence markets on Wednesday:

– UK RICS Housing Survey (June)

– Reopening of 14-year German government debt auction

– Powell continues his testimony, this time before the House Financial Services Committee


(Editing by Muralikumar Anantharaman)


Recent Post: