The Bank of Japan is facing increasing pressure to raise interest rates to at least 1%, according to hawkish policymaker Naoki Tamura. This call for a specific target is a bold move by the BOJ, indicating their determination to continue with monetary tightening. Tamura believes that pushing up short-term borrowing costs is necessary to sustainably
Economy
The U.S. economy has shown remarkable resilience to steep interest rate hikes in recent years. Despite a five percentage point tightening cycle by the Federal Reserve between March 2022 and July 2023, the overall economy has remained relatively unaffected. Real GDP has continued to grow at an annualized rate of over 2% in the past
Recently, Junko Nakagawa, a policymaker at the Bank of Japan, commented on the central bank’s intention to continue raising interest rates in line with its forecast. Despite last month’s market turbulence, the BOJ remains steadfast in its plan to gradually increase borrowing costs. However, Nakagawa emphasized the importance of considering the impact of market fluctuations
World Bank President Ajay Banga recently expressed the need for the global lender to work faster and simplify its processes in response to a world experiencing greater polarization. Banga’s remarks, following his visit to 27 countries from Peru to Tuvalu, highlighted the challenges faced by nations around the world in meeting the requirements of the
As the trading week opens, Wall Street is gearing up for a higher open after a previous week of heavy losses. Investors are looking forward to a crucial inflation report later in the week and are optimistic about a potential soft landing scenario for the U.S. economy. Despite the recent volatility in the market, all
France has approached the European Commission, asking for an extension beyond the original deadline of Sept. 20 to submit a plan aimed at reducing its public deficit. This request comes in the wake of uncertainties regarding Paris’ 2025 draft budget. The Finance Ministry stated that an extension is crucial to ensure the coherence of the
During a recent appearance at the Texas Tribune Festival in Austin, Texas, U.S. Treasury Secretary Janet Yellen hinted that she is likely to step away from serving at the highest levels of government after President Joe Biden’s term ends in January. When asked if she would continue in her current role or take on a
French Prime Minister Michel Barnier has faced numerous challenges throughout his political career, including negotiating Brexit for the European Union. Now, as he takes on the role of Prime Minister under President Emmanuel Macron’s administration, he must navigate the complexities of a deeply divided country. With France currently grappling with political fault lines and a
The recent decline in the number of Americans filing new applications for jobless benefits is a positive sign in the labor market. Despite fears of a deteriorating labor market, layoffs remain low. This news could help to allay concerns about the state of the economy and provide some reassurance to investors. The latest weekly jobless
The recent release of soft U.S. manufacturing data has sent shockwaves through global markets, with investors scrambling for safer assets like the Japanese yen. This move has resulted in a significant rally for the yen, while riskier currencies such as the Australian dollar and sterling have struggled to maintain their footing. The catalyst for this