British workers have hit a sweet spot with wages rising much faster than near-zero inflation, suggesting the economy could gain further momentum as consumers spend their spare cash.
Inflation may be far off target but economists are convinced the United States Federal Reserve and the Bank of England will soon begin raising rates from near zero – with the Fed poised to act as soon as Thursday.
The Japanese yen has strengthened unexpectedly by about 4 percent over the last month and it could rise further if the U.S. Federal Reserve delays a rate hike and the dollar weakens.
That the European Central Bank will have to soon add to its massive stimulus programme is fast becoming the consensus view among economists, although how it will do that effectively is far from clear.
If the most populous country in the world, as well as the largest consumer of raw materials, starts shying away from imports, that means global demand and, by extension, the world economy is taking a real hit.
As anticipation builds ahead of the U.S. Federal Open Market Committee’s Sept. 16-17 meeting, the decision on whether rates will go up or not rests squarely on incoming economic data, according to Fed Chair Janet Yellen.
If there is any silver lining for emerging market currencies after their thrashing in August, it is that they are probably now so cheap they don’t have much room to weaken any further.
The Federal Reserve increasingly looks stuck on the horns of a not-so-bullish dilemma: should it pay attention to global developments in financial markets, which argue for pause, or should it focus squarely on U.S. economic data, which suggest the time is nigh to hike?
South Africa’s second quarter growth undershot economists’ expectations in spectacular fashion on Tuesday, a clear signal emerging markets face torrid times.
The latest euro zone flash purchasing managers’ indexes may have surprised slightly on the higher side, but many are still not convinced that better economic growth is coming later this year.