How central bankers blew up the global economy
5 years, 9 months ago

How central bankers blew up the global economy

ABC  

We humans are a social lot. And so, in July two years ago, when the groundswell of opinion began to shift — that the Reserve Bank would be raising interest rates — arguing otherwise was a fairly lonely position. "Evidence points towards a rise in global wealth concentration: for China, Europe and the United States combined, the top 1 per cent wealth share has increased from 28 per cent in 1980 to 33 per cent today, while the bottom 75 per cent hovered around 10 per cent," he wrote. Zero per cent interest rates and trillions of dollars of cash injections were supposed to be a temporary fix, a massive jolt to the heart of capitalism to revive the global economy. European Central Bank boss Mario Draghi put plans to raise interest rates on hold in an announcement last week.

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History of this topic

Inflation in Europe falls below 2% and opens the way for faster rate cuts
3 months, 1 week ago

Inflation in Europe falls below 2% and opens the way for faster rate cuts

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. Please try again later {{ …

Why the Reserve Bank will be forced to cut rates before year's end
3 months, 4 weeks ago

Why the Reserve Bank will be forced to cut rates before year's end

ABC  

Until just a few weeks ago, it seemed as though the developed world had pulled off what once was thought to be the impossible. And yet, despite this mounting evidence of a critical economic slump, there remains a rump of high-profile economists openly criticising the Reserve Bank of Australia's reluctance to push interest rates above 5 per cent. Parliament House …

Why property and stock markets are thumbing their noses at rate hikes
6 months, 1 week ago

Why property and stock markets are thumbing their noses at rate hikes

ABC  

This time it's different. Photo shows RBA governor Michele Bullock at press conference Rate rise after rate rise should have sent the economy into a tailspin, but the RBA isn't fighting a textbook case of inflation. And it's seen central bankers scrambling to try to nut out just why developed economies aren't reacting to interest rate hikes the way they …

European stocks fall after central bank holds interest rates steady
8 months, 4 weeks ago

European stocks fall after central bank holds interest rates steady

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 Top European stocks have fallen …

As world’s central banks wrestle with when to cut rates, Europe signals it’s ready to move
8 months, 4 weeks ago

As world’s central banks wrestle with when to cut rates, Europe signals it’s ready to move

Associated Press  

FRANKFURT, Germany — The European Central Bank signalled Thursday it could cut interest rates at its next meeting in June, a big step as the rich world’s central banks, including the U.S. Federal Reserve, wrestle with how soon declining inflation will let them lower credit costs for business and consumers. “This is the first time the ECB has talked about …

RBA keeps interest rates on hold at 4.35pc but says 'it will be some time' before inflation within target band
9 months, 3 weeks ago

RBA keeps interest rates on hold at 4.35pc but says 'it will be some time' before inflation within target band

ABC  

The Reserve Bank has left interest rates on hold amid signs that growth in the economy has dramatically slowed down following 13 interest rate rises since May 2022. The cash rate remains at 4.35 per cent, and while the central bank gave no clear indication of where it was headed next, saying it was "not ruling anything in or out", …

Financial markets are jonesing for interest rate cuts. Not so fast, says the European Central Bank
11 months, 2 weeks ago

Financial markets are jonesing for interest rate cuts. Not so fast, says the European Central Bank

Associated Press  

FRANKFURT, Germany — European Central Bank President Christine Lagarde pushed back Thursday against market expectations for quick interest rate cuts even as Europe’s economy sputters and financial markets froth in hopes of cheaper credit that would boost business activity and stock prices. was that it was premature to discuss rate cuts.” Financial markets have been expecting a cut as early …

Why global financial markets are walking a tightrope
1 year, 2 months ago

Why global financial markets are walking a tightrope

ABC  

If the past few months are anything to go by, the era of dependable double digit super returns may be drawing to a close. Longer term, they have upended trading patterns and drawn the curtain on almost three decades of global trade liberalisation, ushering in a new Cold War that's threatening to turn hot. That's left money managers dazed and …

Interest rates will stay high 'as long as necessary,' the European Central Bank's leader says
1 year, 3 months ago

Interest rates will stay high 'as long as necessary,' the European Central Bank's leader says

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 head of the European …

Stock market today: Asian markets are mostly lower as oil prices push higher
1 year, 4 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, …

European Central Bank hikes interest rates to combat inflation and leaves door open to more
1 year, 5 months ago

European Central Bank hikes interest rates to combat inflation and leaves door open to more

Associated Press  

FRANKFURT, Germany — The European Central Bank raised interest rates for the ninth straight time Thursday in its yearlong campaign to stamp out painfully high inflation and kept the door open to further hikes despite increasing fears of recession. ECB President Christine Lagarde had all but promised the quarter-percentage point increase and said the bank’s next moves would be determined …

The world seems headed for a mild output contraction
1 year, 5 months ago

The world seems headed for a mild output contraction

Live Mint  

There are currently four scenarios for the global economic outlook. The most positive is a ‘soft landing,’ where central banks in advanced economies manage to bring inflation down to their 2% targets without triggering a recession. If the effort to tame inflation triggers severe economic and financial instability, a fourth scenario becomes possible: central banks wimp out and allow for …

World banks are lifting rates higher and markets aren’t yet sure what to make of it
1 year, 6 months ago

World banks are lifting rates higher and markets aren’t yet sure what to make of it

LA Times  

Stocks drifted to a mixed finish on Wall Street on Thursday as central banks around the world keep cranking interest rates higher in their fight against inflation. The Fed held interest rates steady at its last meeting after raising rates aggressively throughout 2022 and into 2023 to tame painfully high inflation. Central banks worldwide have been raising interest rates to …

ECONOMIC PERSPECTIVES | Does collapse of key banks in US, Europe portend a return to 2008?
1 year, 9 months ago

ECONOMIC PERSPECTIVES | Does collapse of key banks in US, Europe portend a return to 2008?

The Hindu  

Published : Apr 06, 2023 11:00 IST - 12 MINS READ Developments over the past month have sent jitters through the international banking community. With the US Federal Reserve and other advanced economy central banks having adopted unconventional monetary policies, involving quantitative easing and low or near-zero interest rates, in response to the 2008 crisis, the world was awash with …

Why do the rich get richer — even during global crises?
2 years ago

Why do the rich get richer — even during global crises?

Al Jazeera  

Death and devastation are not the only calling cards COVID-19 will be remembered by. “The result is that this pandemic period has seen the biggest surge in billionaire wealth since the records began,” Oxfam America’s Director of Economic Justice Nabil Ahmed told Al Jazeera. This helps stock and bond markets to thrive creating more wealth and inequality.” This is what …

Philip Lowe is copping criticism for raising interest rates to balance the economy. But it's been done before — and it worked
2 years, 2 months ago

Philip Lowe is copping criticism for raising interest rates to balance the economy. But it's been done before — and it worked

ABC  

Reserve Bank Governor Philip Lowe is getting terrible press, most of it undeserved. How Lowe's low rates saved jobs When COVID hit in 2020, at a time when the Reserve Bank's cash rate was already a then-record low of 0.75 per cent, the bank cut to what Lowe described as the "effective lower bound" of 0.25 per cent, before cutting …

European Central Bank leader doubles down on rate increases
2 years, 2 months ago

European Central Bank leader doubles down on rate increases

Associated Press  

FRANKFURT, Germany — The head of the European Central Bank underlined the bank’s determination to fight rampant inflation with more interest rate increases on top of record hikes, saying Friday that “our job is far from being completed” and that even a mild recession would not be enough to bring rising prices back under control. ECB President Christine Lagarde said …

Major central banks lifts interest rates by nearly 1,570 basis points in 2022 in a fight against inflation
2 years, 3 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 …

Europe’s central bank backs larger-than-expected rate hike
2 years, 5 months ago

Europe’s central bank backs larger-than-expected rate hike

Associated Press  

FRANKFURT, Germany — The European Central Bank raised interest rates Thursday for the first time in 11 years by a larger-than-expected amount, joining steps already taken by the U.S. Federal Reserve and other major central banks to target stubbornly high inflation. She said the bigger hike was unanimous as “inflation continues to be undesirably high and is expected to remain …

Why are interest rates going up? What does inflation have to do with the Reserve Bank’s decision?
2 years, 6 months ago

Why are interest rates going up? What does inflation have to do with the Reserve Bank’s decision?

ABC  

The Reserve Bank has increased the cash rate by 0.5 percentage points. Key points: The official interest rate is going up to curb inflation The RBA Governor has previously warned the official cash rate could get to 2.5 per cent Economists predict it'll be a difficult year ahead for households But do you understand why? "The RBA will adjust interest …

Reserve Bank 0.5 percent interest rate hike the first of many realestate expert Lloyd Edge claims
2 years, 7 months ago

Reserve Bank 0.5 percent interest rate hike the first of many realestate expert Lloyd Edge claims

Daily Mail  

A real estate expert who predicted the Reserve Bank's landmark 0.5 per cent increase in the official cash rate this week has encouraged Australians to put aside $350 extra a month to help see them through further hikes. 1 - Speak to a financial advisor and/or mortgage broker 2 - Ask your bank for a reduced interest rate 3 - …

Why Australians needn't panic about possible interest rate rises as RBA ponders next step
2 years, 11 months ago

Why Australians needn't panic about possible interest rate rises as RBA ponders next step

ABC  

They say talk is cheap, although for the past few years, it hasn't been quite as cheap as cash. Central banks lost control a year ago It's an easy mistake to make; to believe central banks are all-powerful and dictate the direction and size of interest rate movements. A year ago, the 10-year government bond rate – often called the …

EXPLAINER: Why rising rates are unsettling Wall Street
3 years, 10 months ago

EXPLAINER: Why rising rates are unsettling Wall Street

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 Interest rates keep marching higher, …

EXPLAINER: Why rising rates are unsettling Wall Street
3 years, 10 months ago

EXPLAINER: Why rising rates are unsettling Wall Street

Associated Press  

NEW YORK — Yes, it’s possible to have too much of a good thing, and that’s exactly why stock markets around the world are getting so unsettled. But expectations for stronger growth — plus the higher inflation that could accompany it — are pushing interest rates higher, which is forcing investors to re-examine how they value stocks, bonds and every …

Fixed interest rates may have reached rock bottom, say economists
3 years, 11 months ago

Fixed interest rates may have reached rock bottom, say economists

ABC  

The metaphorical 'shelf' for three-year government bonds is almost empty, according to the National Australia Bank. Key points: The Reserve Bank Of Australia has been buying up government bonds to maintain record-low interest rates According to the National Australia Bank, the RBA will own nearly all April 2024 bonds by the middle of this year Economists say this will make …

What hasn’t been done to save the global economy
4 years, 6 months ago

What hasn’t been done to save the global economy

CNN  

A version of this story first appeared in CNN Business’ Before the Bell newsletter. “The need to continue supporting the economy will undoubtedly fuel further discussion about whether negative rates are on the horizon,” James Smith, developed markets economist at ING, told clients after the Bank of England’s announcement last week that it would expand its bond-buying program but hold …

The secret behind the booming stock market in the face of the coronavirus crisis
4 years, 6 months ago

The secret behind the booming stock market in the face of the coronavirus crisis

ABC  

Forget everything you've ever learned about the economy and the supposed link with financial markets. Just three months into what the Bank of England describes as the deepest and sharpest downturn in centuries and stock markets are on a tear, galloping back towards record levels at breakneck speed. Don't even think about thinking On Thursday night, Jerome Powell, the head …

Central bank rate cuts are inflating a cheap money bubble
5 years, 4 months ago

Central bank rate cuts are inflating a cheap money bubble

CNN  

Editor’s Note: Sven Henrich is founder and lead market strategist at NorthmanTrader. It’s when overall stock market capitalization vs. GDP reaches a point historically disconnected from the underlying size of the economy. This new bubble has been induced by central banks’ artificially low interest rates which are creating the TINA effect, which stands for “there is no alternative.” This effect …

Why the Reserve Bank will cut rates again and again
5 years, 7 months ago

Why the Reserve Bank will cut rates again and again

ABC  

The Reserve Bank cut interest rates on Tuesday because we aren't spending or pushing up prices at anything like the rate it would like. As Reserve Bank Governor Philip Lowe said in announcing the rates decision on Tuesday: The main domestic uncertainty continues to be the outlook for household consumption, which is being affected by a protracted period of low …

ECB: Mario Draghi takes new steps to revive Europe’s flagging economy
5 years, 10 months ago

ECB: Mario Draghi takes new steps to revive Europe’s flagging economy

CNN  

London CNN Business — It’s official: Mario Draghi has missed his chance to raise European interest rates. The ECB had previously said it expected rates to remain at present levels “at least through the summer of 2019,” leaving the door ever so slightly open to a rate hike before Draghi’s term ends. Commenting on the ECB’s latest move to stimulate …

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