Commodity prices are soaring and inflation is rising. Should interest rates start increasing too?
2 years, 9 months ago

Commodity prices are soaring and inflation is rising. Should interest rates start increasing too?

ABC  

There’s more inflation coming. Russia-Ukraine war will lift inflation: RBA Photo shows groceries Reserve Bank governor Philip Lowe says the Russia-Ukraine war could change everything and send prices soaring once again. However, the governor of Australia's Reserve Bank, Philip Lowe, says soaring commodity prices will send a new wave of inflation across the globe. So, to prevent that occurring, some economists say central banks ought to lift interest rates sooner rather than later, to keep peoples' inflation expectations "anchored." Soaring commodity prices, supply shocks, and inflation Rabobank analysts say we're about to see the largest supply shock since the aftermath of the Yom Kippur War in 1973.

Europe War Ukraine Russia Inflation Oil Monetary Policy Prices Interest Rates Interest Commodity Prices Central Banks Russian Rates Higher Rba Reserve Bank Headline Inflation Philip Lowe Supply Shocks  prices  oil  united  interest  rba  commodity  start  supply  inflation  increasing  soaring  rates  rising  higher  war  say

History of this topic

UK inflation increase solidifies expectations interest rates will be kept on hold
6 days, 10 hours ago

UK inflation increase solidifies expectations interest rates will be kept on hold

Associated Press  

LONDON — Inflation in the U.K. rose to its highest level in eight months during November, official figures showed Wednesday, a development that has cemented market expectations that the Bank of England will opt against cutting borrowing costs this week. It said stubbornly high inflation in the crucial services sector, which accounts for around 80% of the U.K. economy, and …

UK inflation hits six-month high of 2.3% on high energy bills; BoE stresses on gradual rate cuts
1 month ago

UK inflation hits six-month high of 2.3% on high energy bills; BoE stresses on gradual rate cuts

Live Mint  

British inflation jumped by more than expected last month to rise back above the Bank of England's 2% target and underlying price growth gathered speed too, showing why the BoE is moving cautiously on interest rate cuts. Consumer prices rose by an annual 2.3% in October, pushed up almost entirely by an increase in regulated domestic energy tariffs, after a …

Why the rise in inflation might actually be... good news
4 months, 1 week ago

Why the rise in inflation might actually be... good news

The Independent  

Inflation is up… and that’s, erm, good news. A small cut in the Bank rate from the current 5 per cent to, say, 4.75 per cent in September, October or November is slightly more likely now than it seemed yesterday. Prices overall on this definition rose by 3.3 per cent in the year to July 2024 – down from 3.5 …

Inflation ticks up in Europe, complicating the European Central Bank's next move
4 months, 3 weeks ago

Inflation ticks up in Europe, complicating the European Central Bank's next move

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the 20 countries …

Russia’s Central Bank hikes interest rate as inflation soars
4 months, 4 weeks ago

Russia’s Central Bank hikes interest rate as inflation soars

Associated Press  

MOSCOW — Russia’s Central Bank on Friday raised its key lending rate to its highest level in more than two years to stem soaring inflation in an overheated economy hit by Western sanctions in response to Moscow’s military action in Ukraine. “For inflation to begin decreasing again, monetary policy needs to be tightened further.” It noted that inflationary risks have …

Further rate rises look increasingly possible, but would they fix inflation?
6 months ago

Further rate rises look increasingly possible, but would they fix inflation?

ABC  

After 13 interest rate hikes that sent home loan repayments soaring, we still have an inflation problem. Two years of rate rises have failed to slow the economy down enough to get inflation back within the RBA's preferred range. According to the RBA governor, aggregate demand continues to outstrip supply even though a large number of households are under extreme …

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits
6 months, 3 weeks ago

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits

Live Mint  

-- Australia’s inflation is showing persistent strength and weighing heavily on the finances of some households, a senior Reserve Bank official said, highlighting the limits to further interest-rate increases. “The board are absolutely focused on the fact that inflation is clearly still above the target band,” RBA Assistant Governor Sarah Hunter said at a conference in Sydney on Thursday, referring …

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA
6 months, 3 weeks ago

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA

ABC  

In short: The annual rate of inflation ticked up to 3.6 per cent in April, from 3.5 per cent in March. According to the Australian Bureau of Statistics, an underlying measure of inflation — called "trimmed mean" inflation — also picked up again in April, from 4 per cent to 4.1 per cent. "It does not appear that the RBA …

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem
7 months, 2 weeks ago

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem

ABC  

If only there was a diagnosed condition called One Size Fits All syndrome. That's helped push one measure of price rises — core inflation — higher on a quarterly measure. Quick as a flash, that's sparked a renewed demand from some sections of the economics commentariat for further rate hikes to smash the evils of inflation once and for all. …

Inflation is falling fast – but will the Bank of England move to cut interest rates?
9 months ago

Inflation is falling fast – but will the Bank of England move to cut interest rates?

The Independent  

Some welcome news for consumers: inflation has once again fallen by more than expected. The headline number for February, per the Office for National Statistics, came in at 3.4 per cent – below both the consensus of the City and the Bank of England’s own forecast of 3.5. The CPI “all services” rate also declined to 6.1 per cent in …

Inflation fall 'should kill off' any lingering interest rate rise risks
10 months, 3 weeks ago

Inflation fall 'should kill off' any lingering interest rate rise risks

ABC  

In short: Consumer prices rose just 0.6 per cent over the December quarter, the slowest pace since March 2021, and 4.1 per cent over the past year. Consumer prices rose just 0.6 per cent over the December quarter, the slowest pace since March 2021, and 4.1 per cent over the past year. Moreover, the Reserve Bank's preferred "trimmed mean" measure …

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake
10 months, 3 weeks ago

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake

ABC  

Daniel Wigg doesn't drink alcohol anymore. "Although, like interest rates, it would leave older people unscathed," Mr Eslake said. Saul Eslake says lifting income tax was a common way of responding to high inflation in the 1950s and 60s, but "no government would want to do that now". Mr Eslake also said interest rates were kept "too low for too …

Europe’s inflation is up after months of decline. Could it delay interest rate cuts?
11 months, 2 weeks ago

Europe’s inflation is up after months of decline. Could it delay interest rate cuts?

Associated Press  

FRANKFURT, Germany — Inflation plaguing Europe rose to 2.9% in December, rebounding after seven straight monthly declines as food prices rose and support for high energy bills ended in some countries. The rise in price levels fueled debate over how soon interest rate cuts could be expected from the European Central Bank. The faster-than-expected fall in inflation over the last …

UK inflation falls by more than anticipated to 2-year low of 3.9% in November
1 year ago

UK inflation falls by more than anticipated to 2-year low of 3.9% in November

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the U.K. as …

Interest rates may need to rise again, warns Bank of England
1 year ago

Interest rates may need to rise again, warns Bank of England

The Telegraph  

Policymakers pushed back against any assumption of an imminent fall in the Bank’s base rate, warning that pay and services inflation – two key indicators of price pressures – “remained elevated”. The MPC said: “Inflation persistence remained higher than in other major advanced economies, possibly reflecting less favourable supply-side developments and stronger second-round effects in the UK.” Britain’s inflation rate, …

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried
1 year ago

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried

Daily Mail  

Australian borrowers have been warned to expect another rate hike even though the Reserve Bank has this month left interest rates on hold. The cash rate is already at a 12-year high of 4.35 per cent after the RBA last month raised rates for the 13th time in 18 months. KPMG chief economist Brendan Rynne said the Reserve Bank statement …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

ETF Delay, Interest Rate Hike, More: Factors Affecting Current Crypto Prices
1 year, 2 months ago

ETF Delay, Interest Rate Hike, More: Factors Affecting Current Crypto Prices

ABP News  

While 2022 was a challenging year for the entire cryptocurrency market, the dawn of 2023 brought a glimmer of hope as most cryptocurrencies began to rebound from the losses incurred in the preceding year. This strengthening of the dollar typically signals a robust domestic economy and can be driven by multiple factors, including higher interest rates, increased investor confidence in …

Stock market today: Asian markets are mostly lower as oil prices push higher
1 year, 3 months ago

Stock market today: Asian markets are mostly lower as oil prices push higher

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Crude oil prices pushed higher, …

UK near the end of interest rate rises, says Bailey
1 year, 3 months ago

UK near the end of interest rate rises, says Bailey

The Telegraph  

Inflation will fall markedly by the end of the year, Andrew Bailey has said, as he signalled interest rate rises are nearing their peak. The Bank of England Governor said rates were “much nearer now to the top of the cycle” following 14 consecutive rises in borrowing costs. However, traders trimmed their predictions for future rate rises as they are …

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise
1 year, 4 months ago

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise

Associated Press  

LONDON — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis. The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, …

The RBA says the fight against inflation has entered a new phase. Here's what it means for interest rates
1 year, 4 months ago

The RBA says the fight against inflation has entered a new phase. Here's what it means for interest rates

ABC  

Australia has entered a new frontier in its fight against inflation after the Reserve Bank left interest rates on hold at 4.1 per cent for the second month in a row at its August meeting. It comes back to the fact the RBA's cash rate is only a benchmark — and it's only part of a more complicated puzzle used …

Europe inflation slips to 5.5% — but that won't stop central bank rate hikes
1 year, 5 months ago

Europe inflation slips to 5.5% — but that won't stop central bank rate hikes

The Hindu  

Inflation in Europe slid again in June but fell too slowly to offer much relief to shoppers grumbling over price tags or to stop more interest rate hikes that will raise the cost of borrowing across the economy. While that is a big drop from the peak of 10.6% in October, persistently high prices in the U.S., Europe and the …

Europe inflation slips to 5.5% — but that won’t stop central bank rate hikes
1 year, 5 months ago

Europe inflation slips to 5.5% — but that won’t stop central bank rate hikes

Associated Press  

FRANKFURT, Germany — Inflation in Europe slid again in June but fell too slowly to offer much relief to shoppers grumbling over price tags or to stop more interest rate hikes that will raise the cost of borrowing across the economy. While that is a big drop from the peak of 10.6% in October, persistently high prices in the U.S., …

Europe’s interest rates to stay high as long as needed to defeat inflation, central bank chief says
1 year, 5 months ago

Europe’s interest rates to stay high as long as needed to defeat inflation, central bank chief says

Associated Press  

FRANKFURT, Germany — European Central Bank President Christine Lagarde warned Tuesday that inflation is holding its grip on the economy and underlined that the bank intends to raise rates high enough to “break this persistence.” Lagarde acknowledged that inflation has fallen from all-time highs last year as energy prices plunged and the bank rolled out a rapid series of rate …

UK recession fears mount after Bank of England hikes borrowing rates by more than expected
1 year, 6 months ago

UK recession fears mount after Bank of England hikes borrowing rates by more than expected

Associated Press  

LONDON — Fears that the British economy is heading for recession mounted sharply Thursday after the Bank of England raised borrowing costs by more than anticipated, seeking to combat stubbornly high inflation with a hike that will hit borrowers hard, particularly homeowners who have to refinance in the coming months. “But if we don’t raise rates now, it could be …

Chancellor: ‘No alternative’ to interest rate rises to bring down inflation
1 year, 6 months ago

Chancellor: ‘No alternative’ to interest rate rises to bring down inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The UK has “no alternative” …

Inflation in Europe drops to lowest level since Russia invaded Ukraine
1 year, 6 months ago

Inflation in Europe drops to lowest level since Russia invaded Ukraine

CNN  

London CNN — Inflation in Europe has fallen to its slowest pace since Russia invaded Ukraine, bolstering the case for the region’s central bank to bring interest rate hikes to an end soon. That’s the lowest rate of inflation since February 2022, when Moscow launched a full-scale invasion of its neighbor, sending global energy prices soaring. That could give the …

Europe’s inflation inches up ahead of interest rate decision
1 year, 7 months ago

Europe’s inflation inches up ahead of interest rate decision

Associated Press  

FRANKFURT, Germany — Europe’s painful inflation has inched higher, extending the squeeze on households and keeping pressure on the European Central Bank to unleash what could be another large interest rate increase. Food price inflation eased a little, falling to an annual rate of 13.6% from March’s 15.5%, while energy prices rose a more modest 2.5%. A smaller hike would …

As crisis calls over financial distress climb, treasurer and finance minister say they know rate rises are hurting
1 year, 9 months ago

As crisis calls over financial distress climb, treasurer and finance minister say they know rate rises are hurting

ABC  

Federal government ministers have acknowledged an increase in distress calls to crisis support hotlines over cost of living, but say the fight to rein in inflation must continue. Key points: The federal government has acknowledged a spike in financial distress calls to crisis hotlines Reserve Bank governor Phillip Lowe says mental health concerns of Australians weighs heavily on him The …

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain
1 year, 9 months ago

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain

ABC  

What happens on the other side of trouble? The National Accounts, which also measure inflation with what's called the GDP "price deflator", has the cost of living rising at 9.1 per cent. AMP senior economist Diana Mousina puts the "recession probability in the next two years as high, around 40 per cent". "That's almost half the 4.7 per cent annual …

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it
1 year, 10 months ago

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it

ABC  

Higher prices, that is. The Reserve Bank summed this up in this week's Monetary Policy Decision: "Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy." "There's no doubt that corporations have taken advantage of the supply chain problems and the desperation of consumers …

Can US interest rate hikes curb high inflation in new year?
1 year, 11 months ago

Can US interest rate hikes curb high inflation in new year?

China Daily  

People shop at a Target store during Black Friday sales in Chicago, Illinois, US, November 25, 2022. Faced with decades-high inflation, the US Federal Reserve has been aggressively raising the interest rate, which in turn is strengthening the dollar. To deal with the pandemic in the initial days, the Fed lowered interest rates for federal funds to 0-0.25 percent, and …

Europe’s inflation likely hasn’t peaked, ECB’s Lagarde says
2 years ago

Europe’s inflation likely hasn’t peaked, ECB’s Lagarde says

Associated Press  

BRUSSELS — The head of the European Central Bank said Monday she does not believe inflation has peaked after reaching the highest levels on record. ECB President Christine Lagarde also told European lawmakers that the bank isn’t through raising interest rates to combat those price spikes. That means the central bank will “continue to tame inflation with all the tools …

Reserve Bank' admits higher interest rates WON'T bring down inflation
2 years, 1 month ago

Reserve Bank' admits higher interest rates WON'T bring down inflation

Daily Mail  

The Reserve Bank has admitted hiking interest rates aggressively doesn't necessarily bring down inflation quickly. Australia inflation grew by 7.3 per cent in the year to September at levels unseen since 1990 The Reserve Bank's statement on monetary policy released earlier this month forecast annual inflation remaining above its target until 2025, after falling to 3.25 per cent in December …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 1 month ago

Australia has a problem with inflation, and that likely means more interest rate hikes to come

ABC  

Australia has a problem with inflation. It's a judgement call The Reserve Bank's inflation fighting job would be a heck of a lot easier if there wasn't such a time lag between cause and effect — that is, raising interest rates and seeing prices come down. But the Reserve Bank's key objective of lowering inflation back to the target range …

Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened
2 years, 1 month ago

Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened

ABC  

Is there a better way to calculate inflation? Coz it seems like these interest rate hikes aren’t working as well as the RBA would like!!! Secondly, we’re all impatient to see inflation falling but it’s going to take time unfortunately, under current policy settings. And for the last 12 months, Perth’s annual inflation, at 6 per cent, has been the …

Inflation hits new record in Europe, slowing economy
2 years, 1 month ago

Inflation hits new record in Europe, slowing economy

The Hindu  

Inflation hit a new record in the 19 countries that use the euro currency, fueled by out-of-control prices for natural gas and electricity due to Russia's war in Ukraine. While liquid gas succeeded in filling Europe's storage for the winter, the higher prices have made some industrial products such as steel or fertilizer expensive or simply unprofitable to make. Natural …

Major central banks lifts interest rates by nearly 1,570 basis points in 2022 in a fight against inflation
2 years, 2 months ago

Major central banks lifts interest rates by nearly 1,570 basis points in 2022 in a fight against inflation

Live Mint  

In a fight against inflation, major central banks around the world are raising interest rates to a level not seen since 2008. Relentless rate hikes by Major Central banks The world's largest economy, the United States, began raising interest rates in March. Name Rate hikes in 2022 US Federal Reserve 300 Bank of Canada 300 Reserve Bank of Australia 225 …

Philip Lowe says the Reserve Bank will do 'what is necessary' to combat 'scourge' of high inflation
2 years, 3 months ago

Philip Lowe says the Reserve Bank will do 'what is necessary' to combat 'scourge' of high inflation

ABC  

The Reserve Bank governor has said he remains "committed to doing what is necessary" to prevent the "scourge" of high inflation taking hold, but did offer some hints that the pace of rate rises might soon slow. Key points: Philip Lowe says high inflation is a "scourge" that must be stopped from becoming entrenched The RBA governor said a global …

Reserve Bank raises interest rates again in most aggressive increases since 1994
2 years, 3 months ago

Reserve Bank raises interest rates again in most aggressive increases since 1994

ABC  

The Reserve Bank has raised interest rates by 0.5 of a percentage point, taking its cash rate target to 2.35 per cent. Key points: The RBA has raised the cash rate by 0.5 of a percentage point for the fourth straight month The cash rate target of 2.35 per cent is the highest since the beginning of 2015 RBA governor …

UK interest rate: The Bank of England just made its biggest hike in 27 years
2 years, 4 months ago

UK interest rate: The Bank of England just made its biggest hike in 27 years

CNN  

London CNN Business — Central bankers in the United Kingdom have announced the biggest increase in interest rates in 27 years, as spiraling inflation continues to cripple millions of households’ finances. In June, annual consumer prices rises reached a four-decade high to hit 9.4%, plunging millions of Britons into a cost-of-living crisis that has forced many to choose between ‘heating …

Eurozone inflation surges to record high in fresh blow to Lagarde
2 years, 4 months ago

Eurozone inflation surges to record high in fresh blow to Lagarde

The Telegraph  

Inflation in the eurozone has soared to a new record high, piling more pressure on the European Central Bank as price rises show no signs of slowing. “Going forward, the path for inflation is very dependent on what happens with Russian gas flows, and hence energy prices, but in any case it isn’t expected to come down fast,” she added. …

US inflation jumps 9.1 percent in June to fresh four-decade high
2 years, 5 months ago

US inflation jumps 9.1 percent in June to fresh four-decade high

Al Jazeera  

The rise in the CPI gives the Federal Reserve – the US central bank – free rein to hike interest rates further later this month. US inflation roared again to a fresh four-decade high last month, likely strengthening the Federal Reserve’s resolve to aggressively raise interest rates that risks upending the economic expansion. The consumer price index rose 9.1% from …

Rising interest rates could spark job losses. Is this the best system we have?
2 years, 5 months ago

Rising interest rates could spark job losses. Is this the best system we have?

ABC  

The Reserve Bank will consider lifting interest rates again today. Because after suffering through stagflation in the 1970s, policymakers wanted to prevent stubbornly high inflation ever becoming a problem again, so they abandoned the post-war policy of "full employment". "This radical transformation of employment service delivery is without parallel in OECD countries," noted the Organisation for Economic Co-operation and Development …

Reserve Bank governor Philip Lowe warns it is unclear how high interest rates will go
2 years, 6 months ago

Reserve Bank governor Philip Lowe warns it is unclear how high interest rates will go

ABC  

The Reserve Bank governor has warned Australians they need to be prepared for substantial interest rate rises over the rest of this year, conceding he is not sure how high they might go. Key points: Philip Lowe says it is "reasonable" to think interest rates will get to 2.5 per cent at some point He expects inflation could reach 7 …

Europe’s central bank to hike rates in July, 1st in 11 years
2 years, 6 months ago

Europe’s central bank to hike rates in July, 1st in 11 years

Associated Press  

AMSTERDAM — The European Central Bank will raise interest rates next month for the first time in 11 years and add another hike in September, catching up with other central banks worldwide as they pivot from supporting the economy during the COVID-19 pandemic to squelching soaring inflation. “Russia’s unjustified aggression towards Ukraine continues to weigh on the economy in Europe …

Reserve Bank of Australia warning of more interest rate rises as inflation soars
2 years, 7 months ago

Reserve Bank of Australia warning of more interest rate rises as inflation soars

Daily Mail  

Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated. Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated On Friday the 13th last week, …

‘Rate increases may not cool price gains driven by war’
2 years, 7 months ago

‘Rate increases may not cool price gains driven by war’

The Hindu  

The Reserve Bank of India’s interest rate increases may not be able to ‘meaningfully’ cool prices while sacrificing growth, as almost three-fifths of the spike in India’s retail inflation since February can be linked to the Ukraine-Russia conflict, SBI’s economic researchers wrote in a report on Monday. “In a situation of incipient demand recovery post COVID, the question will be …

Inflation is growing at its fastest pace in 20 years. Is it making you behave differently?
2 years, 7 months ago

Inflation is growing at its fastest pace in 20 years. Is it making you behave differently?

ABC  

Inflation is growing at its fastest pace in 20 years. Underlying inflation — which removes volatile price movements from the data to see the truer rate of inflation underneath — grew by 1.4 per cent in the March quarter. In the March quarter, around 70 per cent of the goods in the consumer price index "basket" had an annualised inflation …

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