#ProducerPriceIndex

[cambcurrencies]

BoJ rate decision, yen drops, ECB Lagarde speech

Fed Holds Rates at 5.5% BoJ rate decision The Bank of Japan, or BoJ, earlier this morning choose to keep rates constant at 0%. This decision, coupled with the announcement of future bond-buying cuts, led to the yen falling to a one-month low. The BoJ indicated it would continue its current bond purchases and plans to reveal its tapering strategy in July, contrary to market expectations that had…

[binimom]

monetary policy change

In the mesmerizing opera of the global economy, actors come and go, playing their parts with precision and sending ripples across the world stage. Recently, international oil prices fell, the People's Bank of China (PBOC) announced a smaller-than-expected interest rate cut, and South Korea's producer price index (PPI) declined. Let's take a closer look.

The slippery slope of oil prices and the PBOC's unexpected reversal

International oil prices have recently been on a downward spiral that is rooted not only in the interplay of supply and demand, but also in the overall monetary policy and economic environment. As the center of global economic activity, China has a significant impact on these oil price movements. On June 20, 2023, the PBOC announced an interest rate cut of 0.25%, which fell well short of market forecasts. The announcement reverberated with disappointment across exchanges and sent global markets into a state of anxiety. Concerns about a potential slowdown in the powerful Chinese economy began to rise, fanning the flames of anxiety about a possible global recession. But it's important to remember that the Chinese economy, a bastion of resilience, has weathered many storms. The country's economic growth story is filled with examples of recovering from crises and continuing its expansionary journey. This economic downturn may just be another moment in that powerful growth story.

Emphasize global response and stability

The tremors of volatile oil prices and economic uncertainty extend far beyond China. Developed countries, including the U.S., are already strategizing to offset this instability. Actions range from conserving energy and developing alternative energy sources to fostering new industrial sectors that can spur economic growth. These initiatives are expected to play an important role in strengthening international economic stability. The current decline in international oil prices may be a temporary phase, and it is important to enhance the resilience of the global economy through various countermeasures. The world is watching with bated breath the transformation of China's economy and the rise and fall of oil prices. Meanwhile, the Bank of Korea said that producer prices have been falling for two consecutive months due to lower oil prices. The producer price index stood at 120.14 in May, down 0.3% from the previous month (120.5). This decrease is worth noting considering that the index was on an upward trajectory from January through March. Compared to May 2022, it was up 0.6%. The drop in oil prices had a significant impact on certain commodities, with coal and petroleum products down 6.3% and chemicals down 1.1%.

Conversely, some commodities saw gains, with livestock up 3.1%, seafood up 1.2%, and agricultural products up 0.3%.

[coffemachines-blog-blog]

US Producer Price Index (PPI) Eases in August 2022 #Shorts

[cambcurrencies]

UK GDP Stagnates, US Inflation Lower; Fed Holds Rates at 5.5%

Fed Holds Rates at 5.5% Yesterday turned out to be an eventful day for the markets. UK GDP numbers came in at 0% -meaning that the economy has come to a standstill. Looking across the Atlantic, in the United States, inflation came out at a lower than expected 3.3%. Good news by itself, but after all said and done, the Fed Holds Rates at 5.5%. Today’s data: Producer Price Index; PPI ex Food &…