Latest news with #economicpolicy
Wall Street Journal
an hour ago
- Business
- Wall Street Journal
China Politburo Holds off on Further Stimulus
Chinese leaders signaled they would refrain from rolling out more major stimulus for now, as authorities pivot to addressing excess capacity in the economy. Instead of announcing more policy support to bolster growth, the ruling Communist Party's Politburo, China's top policymaking body, pledged Wednesday to better execute policies that are already in place, according to a readout by state-run Xinhua News Agency.
Zawya
2 days ago
- Business
- Zawya
ECB's Kazimir says big unexpected economic shift needed for September rate cut
FRANKFURT - The European Central Bank is not in any hurry to lower borrowing costs again and it would take a major unexpected economic shift to make a case for action in September, Slovak policymaker Peter Kazimir said on Monday. The ECB kept rates unchanged last week as widely expected and offered a moderately upbeat assessment on the bloc's economy, prompting investors to scale back their bets on further policy easing. "When it comes to incoming data, I don't expect anything significant to happen that would force my hand to act as soon as September," Kazimir said in a blog post. "It would take something like clear signs of unravelling in the labour market for me to act." This assessment aligns with comments from ECB sources that the bar for a cut in September is high after the bank has already halved rates to 2% since June 2024. Sunday's EU trade deal with the U.S. was clearly a positive since it reduces uncertainty for businesses, but the impact on prices, the ECB's chief focus, was still unclear. "This (trade deal) can help to ease concerns and regain confidence," Kazimir said. "We now have more clarity, but we will need time to see to what extent this new environment will affect inflation." Weighing in on a key debate among policymakers, Kazimir said he did not see a risk that inflation would now undershoot the ECB's 2% target, much like it did in the pre-pandemic decade. Price growth is seen dipping below 2% next year and only rebounding in 2027, raising worries among some governors that once inflation is well below 2%, expectations also fall and could perpetuate weak price growth. "I see no looming spectre of a sustained undershooting of inflation," Kazimir, an outspoken policy hawk, said. "The expected dips below target in the coming year should be temporary." He added that trade turmoil also created upside risks for inflation, particularly if global supply chains were realigned, creating bottlenecks.
Yahoo
2 days ago
- Business
- Yahoo
ECB's Kazimir says big unexpected economic shift needed for September rate cut
FRANKFURT (Reuters) -The European Central Bank is not in any hurry to lower borrowing costs again and it would take a major unexpected economic shift to make a case for action in September, Slovak policymaker Peter Kazimir said on Monday. The ECB kept rates unchanged last week as widely expected and offered a moderately upbeat assessment on the bloc's economy, prompting investors to scale back their bets on further policy easing. "When it comes to incoming data, I don't expect anything significant to happen that would force my hand to act as soon as September," Kazimir said in a blog post. "It would take something like clear signs of unravelling in the labour market for me to act." This assessment aligns with comments from ECB sources that the bar for a cut in September is high after the bank has already halved rates to 2% since June 2024. Sunday's EU trade deal with the U.S. was clearly a positive since it reduces uncertainty for businesses, but the impact on prices, the ECB's chief focus, was still unclear. "This (trade deal) can help to ease concerns and regain confidence," Kazimir said. "We now have more clarity, but we will need time to see to what extent this new environment will affect inflation." Weighing in on a key debate among policymakers, Kazimir said he did not see a risk that inflation would now undershoot the ECB's 2% target, much like it did in the pre-pandemic decade. Price growth is seen dipping below 2% next year and only rebounding in 2027, raising worries among some governors that once inflation is well below 2%, expectations also fall and could perpetuate weak price growth. "I see no looming spectre of a sustained undershooting of inflation," Kazimir, an outspoken policy hawk, said. "The expected dips below target in the coming year should be temporary." He added that trade turmoil also created upside risks for inflation, particularly if global supply chains were realigned, creating bottlenecks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
ECB's Kazimir says big unexpected economic shift needed for September rate cut
FRANKFURT, July 28 (Reuters) - The European Central Bank is not in any hurry to lower borrowing costs again and it would take a major unexpected economic shift to make a case for action in September, Slovak policymaker Peter Kazimir said on Monday. The ECB kept rates unchanged last week as widely expected and offered a moderately upbeat assessment on the bloc's economy, prompting investors to scale back their bets on further policy easing. "When it comes to incoming data, I don't expect anything significant to happen that would force my hand to act as soon as September," Kazimir said in a blog post. "It would take something like clear signs of unravelling in the labour market for me to act." This assessment aligns with comments from ECB sources that the bar for a cut in September is high after the bank has already halved rates to 2% since June 2024. Sunday's EU trade deal with the U.S. was clearly a positive since it reduces uncertainty for businesses, but the impact on prices, the ECB's chief focus, was still unclear. "This (trade deal) can help to ease concerns and regain confidence," Kazimir said. "We now have more clarity, but we will need time to see to what extent this new environment will affect inflation." Weighing in on a key debate among policymakers, Kazimir said he did not see a risk that inflation would now undershoot the ECB's 2% target, much like it did in the pre-pandemic decade. Price growth is seen dipping below 2% next year and only rebounding in 2027, raising worries among some governors that once inflation is well below 2%, expectations also fall and could perpetuate weak price growth. "I see no looming spectre of a sustained undershooting of inflation," Kazimir, an outspoken policy hawk, said. "The expected dips below target in the coming year should be temporary." He added that trade turmoil also created upside risks for inflation, particularly if global supply chains were realigned, creating bottlenecks.
Yahoo
3 days ago
- Business
- Yahoo
White House presses Fed for ‘dramatically lower' rates as meeting looms
The White House on Sunday demanded 'dramatically lower' interest rates as it raised pressure on US Federal Reserve chair Jay Powell for a Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
