Page 21 - Inflation

Pakistan central bank's MPC cuts key policy rates by 200 bps to 17.5%

Pakistan's Central bank on Thursday cut its key policy rate by 200 basis points to 17.5 per cent from 19.5 per cent bowing to demands for a major rate cut. The State Bank in a statement said that the Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 basis points (bps) to 17.5 per cent in its meeting on Thursday. Various factors impacting the inflation outlook were taken into consideration while reaching this decision, it said. Inflation in August was at 9.6 per cent, resulting in a positive real interest rate of 10 per cent. Financial experts generally anticipated a reduction of 150 bps with some forecasting a cut of up to 200 bps. However, industry leaders advocated for a deep 500 bps cut to spur economic growth. The Monetary Policy Committee (MPC) assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5 to 7 per cent and help ensure macroeconomic stability, the statement read. The MPC said glob

Inflation likely held below RBI's target at 3.5% again in Aug, finds survey

Although food prices, which make up nearly half the inflation basket, have eased significantly in the last two months, erratic monsoon rains across India could harm crop yields

Inflation debate must consider downsides of alternative frameworks

To be fair, the RBI or the MPC on its own cannot change the target or stop taking into account one part of the consumer basket without appropriate amendment to the RBI Act

ECB at risk of becoming too restrictive, cuts interest rates: Cipollone

"The data so far confirms our direction of travel and I hope that they will allow us to continue to be less restrictive," Cipollone told Le Monde in an interview

Lenders' deposit shortage could put speed limit on credit-fueled investment

The govt is making the deposit crunch worse by taxing savers aggressively, but keeping the proceeds away from the financial system. Bankers are compounding the problem by not paying enough to savers

Oil goes higher as halted Libyan exports levels expected Opec+ supply boost

News of increased production helped push oil prices lower last week but the scale of the sell-off was overdone, said Phil Flynn, an analyst at Price Futures Group

Pakistan inflation ceases further in Aug providing room for more rate cuts

Pakistan's central bank has slashed rates by a cumulative 250 basis points in the last two meetings and is scheduled to hold the next review on Sept 12

Donald Trump vows to tackle inflation, corruption at Pennsylvania rally

Trump said that he will work towards making the country a dominant energy producer in the world and claimed the country will experience a reduction in energy costs

Inflation targeting: Why modifying the approach may be counterproductive

The current inflation-targeting regime should be suitably updated, but it should remain the framework for India's monetary policy for the foreseeable future

Bank of Canada may cut interest rates deeper, faster over next year

Policymakers led by Governor Tiff Macklem are expected to lower the benchmark overnight rate to 4.25 per cent at their Sept. 4 meeting

Asia shares edge up ahead of inflation data today, oil price gains

Brent rose 51 cents to $79.53 a barrel, while U.S. crude added 50 cents to $75.33 per barrel

Why RBI cannot ignore food price pressures in overall inflation management

High food inflation can lead to the unanchoring of inflation expectations, which could significantly complicate overall inflation management

Who has won the inflation debate - Team Transitory or Team Permanent?

The rift between those who said inflation was transient and those who thought it permanent partly reflected differences over what caused prices to rise in the first place

Food inflation likely to drop in coming months on good harvest: Govt report

The steady progress in the southwest monsoon has supported summer sown crops, finance ministry said in its monthly economic report

China's extreme weather takes bite out of produce as prices rise sharply

Soaring food prices this summer present an additional headache for the world's second-largest economy, which is already wrestling with thorny problems from sluggish factory output and joblessness

Why it makes sense for food prices to be cut out of RBI's inflation target

Officials are depressingly hesitant to touch anything to do with food production and prices, since these are particularly sensitive politically

US producer inflation slows in July amid signs of pricing power diminishing

The report from the Labor Department on Tuesday also showed favorable readings for most of the components that go into the calculation of the personal consumption expenditures

Spiraling electricity bills overtake rent costs for some people in Pakistan

The South Asian nation - where nearly half the population survives on less than $4 a day - has seen electricity prices surge 155 per cent since 2021

Retail inflation cools to nearly 5-year low in July, IIP falls 4.2% in June

Food inflation remained declined to 5.42 per cent in July from 9.36 per cent in June

Govt bond yields may soften slightly as inflation falls below forecast

Market participants expect the benchmark yield to open around 6.85 per cent on Tuesday