#InflationControl

[onlinehomesupplience]

Calls Grow for Bank of England to Slash Interest Rates to 4% Amid Tariff-Driven Economic Jitters

As global trade tensions and tariff disputes put pressure on the UK economy, economists and financial analysts are urging the Bank of England to cut interest rates to at least 4% in May. The proposed rate reduction is seen as a proactive measure to shield businesses and consumers from inflationary shocks and potential slowdowns in growth.

[ipbbanking]

Did you know? The RBI is the backbone of India’s Banking System. RBI is always working behind the scenes, from controlling inflation to managing your money’s safety and even making sure your bank can give you the loan you need.

RBI ensures everything runs smoothly, even when the economy faces challenges.

But it’s not just about keeping things stable. The RBI also works to include everyone in the financial system, making sure people in remote corners of India can access banking too.

What role do you think the RBI plays in your financial life? Share your thoughts with us below!

[lmsintmedia]

APC Group Commends Federal Government for Renewing China Currency Swap Deal

The APC Northwest Reclamation Front (ANRF) commends the Federal Government for renewing the Nigeria-China currency swap deal, highlighting its potential to revitalize the naira and boost economic growth, while urging action against banditry and hoarders in the Northwest. The APC Northwest Reclamation Front (ANRF) has lauded the Federal Government’s decision to renew the Nigeria-China currency…

[timebharat]

India’s Central Bank Governor Sees Better 2025 Growth Prospects

India’s Central Bank Governor, Shaktikanta Das, has expressed optimism about the country’s economic prospects for 2025. In his latest statement, he indicated that the country is likely to experience better growth in the coming year. His comments come amid challenges in the global economy, including inflationary pressures and geopolitical uncertainties.

Das emphasized that India’s strong domestic demand, coupled with structural reforms and robust financial systems, will contribute to a positive growth trajectory in 2025. He also pointed to the resilience of the Indian economy, noting that despite external challenges, India’s economic fundamentals remain strong. Furthermore, the Reserve Bank of India (RBI) is expected to continue its policy efforts to support economic stability and growth.

[pay-it-later]

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[rethinking-the-dollar]

Will the Fed cut rates by 25 or 50 points? Find out what’s at stake in this critical economic decision. 3 Reasons Why the Fed's Next Move Will Surprise You

[inexable]

The Fed's Rate Cut to the Rescue?

With the latest reports showing a softening U.S. labor market, the Federal Reserve is on the brink of making a big move—cutting interest rates for the first time in years. With hiring slowing down and a slight uptick in unemployment, Fed Chair Jerome Powell faces the high-stakes task of balancing inflation and economic growth just weeks before a pivotal presidential election.

Economists are divided: Some argue the Fed might have kept rates too high for too long, while others don't foresee an imminent recession. However, data reveals fewer job opportunities and wary small businesses trimming headcounts.

What do you think? Will lowering rates be the remedy the economy needs, or has the Fed already miscalculated? How do you think this economic landscape will impact the election, and do you feel the current administration’s optimistic outlook matches the reality on the ground? Join the discussion!

[thxnews]

UK PM Rishi Sunak Final Downing Street Speech

Good morning, I will shortly be seeing His Majesty the King to offer my resignation as Prime Minister. To the country, I would like to say, first and foremost, I am sorry. I have given this job my all. But you have sent a clear signal that the government of the United Kingdom must change… …and yours is the only judgement that matters. I have heard your anger, your disappointment; and I take responsibility for this loss. To all the Conservative candidates and campaigners who worked tirelessly but without success… …I am sorry that we could not deliver what your efforts deserved. It pains me to think how many good colleagues… …who contributed so much to their communities and our country… …will now no longer sit in the House of Commons. I thank them for their hard work, and their service. Following this result, I will step down as party leader… …not immediately, but once the formal arrangements for selecting my successor are in place. It is important that after 14 years in government the Conservative Party rebuilds… …but also that it takes up its crucial role in Opposition professionally and effectively. When I first stood here as your Prime Minister, I told you the most important task I had was to return stability to our economy. Inflation is back to target, mortgage rates are falling, and growth has returned. We have enhanced our standing in the world, rebuilding relations with allies… …leading global efforts to support Ukraine… …and becoming the home of the new generation of transformative technologies. And our United Kingdom is stronger too: with the Windsor Framework, devolution restored in Northern Ireland, and our Union strengthened. I’m proud of those achievements. I believe this country is safer, stronger, and more secure than it was 20 months ago. And it is more prosperous, fairer, and resilient than it was in 2010. Whilst he has been my political opponent, Sir Keir Starmer will shortly become our Prime Minister. In this job, his successes will be all our successes, and I wish him and his family well. Whatever our disagreements in this campaign, he is a decent, public-spirited man, who I respect. He and his family deserve the very best of our understanding, as they make the huge transition to their new lives behind this door… …and as he grapples with this most demanding of jobs in an increasingly unstable world. I would like to thank my colleagues, my Cabinet, the Civil Service - especially here in Downing Street… …the team at Chequers, my staff, CCHQ… …but most of all I would like to express my gratitude to my wife Akshata and our beautiful daughters. I can never thank them enough for the sacrifices they have made so that I might serve our country. One of the most remarkable things about Britain is just how unremarkable it is… …that two generations after my grandparents came here with little, I could become Prime Minister… …and that I could watch my two young daughters light Diwali candles on the steps in Downing Street. We must hold true to that idea of who we are… …that vision of kindness, decency, and tolerance that has always been the British way. This is a difficult day, at the end of a number of difficult days. But I leave this job honoured to have been your Prime Minister. This is the best country in the world and that is thanks entirely to you, the British people… …the true source of all our achievements, our strengths, and our greatness. Thank you.   Sources: THX News, Prime Minister's Office, 10 Downing Street & The Rt Hon Rishi Sunak. Read the full article

[gqresearch24]

ECB Cuts Interest Rates For First Time In Five Years

(Source – Portfolio Adviser)

On Thursday, the European Central Bank (ECB) lowered interest rates for the first time in nearly five years, marking a significant shift from its previously aggressive stance aimed at combating a surge in inflation. This decision signals a pivotal change in the bank’s monetary policy as inflation nears the ECB’s target of 2 percent. Officials reduced their three key interest rates by a quarter-point, applicable across all 20 eurozone countries, bringing the benchmark deposit rate down to 3.75 percent from 4 percent, the highest in the bank’s 26-year history, where it had been since September.

“The inflation outlook has improved markedly,” stated Christine Lagarde, President of the ECB, during a news conference in Frankfurt. “It is now appropriate to moderate the degree of monetary policy restriction.” However, Lagarde did not provide a clear timeline or number of future rate cuts, leaving some uncertainty in the market.

Global Trend Towards Lower Rates

This move by the ECB follows similar actions by other major central banks around the world. On Wednesday, the Bank of Canada became the first Group of Seven (G7) central bank to reduce rates, with central banks in Switzerland and Sweden also implementing rate cuts recently. These actions reflect a growing consensus among policymakers that the high interest rates used to restrain economies and curb inflation have been effective, and now there is room to lower rates to support economic growth.

In contrast, the United States Federal Reserve remains more cautious, opting to wait for more consistent signs that inflation is under control before considering rate cuts. The Bank of England, however, has indicated potential rate cuts could come as early as this summer, with some officials advocating for easing monetary policy sooner rather than later.

Signs of Stabilizing Inflation in Europe

The ECB’s decision to cut rates for the first time since September 2019 sends a clear message that Europe’s inflation crisis is largely behind it. In late 2022, eurozone inflation peaked at over 10 percent due to soaring energy prices and rising consumer goods costs. Workers also demanded higher wages to offset the impact of inflation.

The ECB responded with its most aggressive rate hike cycle in history, raising the deposit rate from negative 0.5 percent in July 2022 to 4 percent in September 2023. These measures helped reduce inflation to 2.6 percent by May 2024. The decline in energy prices over the past year has been a significant factor in this reduction, along with a decrease in food inflation, which fell from over 12 percent a year ago to below 3 percent.

“Monetary policy has kept financing conditions restrictive,” Lagarde noted. “By dampening demand and keeping inflation expectations well anchored, this has made a major contribution to bringing inflation back down.”

Despite this progress, the ECB remains cautious. While Europe’s benchmark stock index hit a record high before the rate cut announcement, it lost some gains as the bank indicated a careful approach to future rate cuts. The ECB warned that underlying price pressures persist, predicting inflation will remain above the 2 percent target well into the next year. The overall inflation rate is expected to average 2.2 percent next year, slightly higher than the ECB’s projection three months ago. Recent data shows stronger-than-expected inflation, particularly in the services sector, which saw an acceleration from 3.7 percent in April to 4.1 percent in May.

Policymakers are also closely monitoring wage growth, which can lead to higher consumer prices if companies pass on increased labor costs. As Europe navigates this new phase of monetary policy, the ECB’s careful balancing act will be crucial in ensuring sustained economic stability while keeping inflation in check.

[cambcurrencies]

ECB Interest Rates and Australian Retail Sales

ECB Interest Rates and Australian Retail Sales

[wnewsguru]

आरबीआई ने मुद्रास्फीति लक्ष्य के लिए मौद्रिक नीति समिति के मिनट जारी किए

इस्राइल-हमास के बीच जारी संघर्ष से महंगाई पर जोखिम बना हुआ है। उच्च ब्याज दरों से फिलहाल राहत मिलने की उम्मीद नहीं है। आरबीआई गवर्नर शक्तिकांत दास ने कहा, ब्याज दर फिलहाल ऊंची बनी रहेगी। समय और वैश्विक स्तर पर अभरती स्थिति ही बताएगी कि यह कितने समय तक ऊंचे स्तर पर बनी रहेगी।

[financespiders0]

The Money Magic: How The Fed Helps Keep Prices Stable - Financespiders

When it comes to the world of economics, there's a magical institution that works behind the scenes to ensure the prices of goods and services stay steady. This financial wizardry is performed by none other than the Federal Reserve, or the Fed.

In this blog, we'll unveil the enchanting secrets of how the Fed works its magic to keep prices stable and why it's vital for our economy.

What Is The Federal Reserve (The Fed)?

Before we dive into the magic, let's meet the magician. The Federal Reserve is like the financial headquarters of the United States. Think of it as the conductor of an orchestra, guiding the country's economic performance. One of its most crucial tasks is maintaining price stability.

Price Stability: The Magic Trick

Picture a see-saw in a playground. When it's perfectly balanced, it stays level. That's precisely what the Fed aims to do with prices in the economy – keep them balanced. This balance is what economists call "price stability."

Here's how the Fed works its magic:

1. Monitoring Inflation:

Inflation is like a sneaky trickster that makes prices go up over time. While some inflation is normal and healthy for the economy, too much can be a problem. The Fed keeps a watchful eye on inflation rates to ensure they stay at a manageable level. It does this by using its tools and powers to control the amount of money circulating in the economy.

2. Interest Rates:

Now, this is where the real magic happens. The Fed has the power to adjust interest rates, which influences how expensive or cheap it is to borrow money. When the economy needs a boost, the Fed can lower interest rates, making it more attractive for people and businesses to borrow money. This encourages spending and investments, which can help keep prices stable.

On the flip side, when the economy is growing too fast and prices are rising too quickly, the Fed can raise interest rates. This acts as a brake, slowing down spending and borrowing, which can prevent prices from spiraling out of control.

3. Economic Balance:

The Fed also keeps a close eye on the overall health of the economy. It strives to maintain a balance between jobs and inflation. By promoting sustainable economic growth and job creation, it helps ensure that people have the means to afford the things they need and enjoy.

Why Does Price Stability Matter To You?

Now that you've seen how the Fed works its magic, you might wonder why it matters to you.

Price stability affects your daily life. When prices remain steady, your hard-earned money can buy the same amount of goods and services over time. You won't need to worry about your allowance losing its purchasing power due to skyrocketing prices.

Moreover, when the Fed does its job well, it helps create a stable economic environment. This means more job opportunities for your parents, teachers, and even your future self.

In Conclusion

The Federal Reserve, or the Fed, may seem like a mysterious magician in the world of economics, but its goal is straightforward: to keep prices stable so you can enjoy a predictable and prosperous economic landscape. The next time you hear about the Fed, you'll know it's all about ensuring the magic of price stability continues to benefit us all.

[newsbites]

News from Australia, 4 July

A one-year-old Aboriginal girl named Kailee died at Perth Children's Hospital, leading to allegations of neglect and racism from hospital staff. The girl's mother claimed medical staff lied about her daughter's condition and neglected her. The hospital denied the allegations, saying timely and appropriate care was provided.

2. A police officer is due to appear in court for allegedly tasering a 95-year-old woman with dementia, causing her to suffer a fractured skull and ultimately leading to her death.

The officer has been charged with recklessly causing grievous bodily harm, assault occasioning actual bodily harm, and common assault.

The possibility of upgrading the charges is being considered by the NSW Police Commissioner following the woman's death.

3. The Reserve Bank of Australia (RBA) kept interest rates steady at 4.10% to assess the impact of past hikes and warned that further tightening might be necessary to control inflation.

Economic data has been mixed, with a cooling inflation reading arguing for a pause, but strong jobs and retail sales figures suggesting the need for further action by the RBA.

There is a decent chance of a rate hike in August, especially if the second-quarter inflation figures reveal that inflation remains high.

4. Introducing a fuel-efficiency standard in Australia could save drivers up to $10,000 over the life of their vehicles and reduce carbon emissions by 31 million tonnes by 2035.

The policy would also lead to a 2.8% annual reduction in the price of electric cars and deliver economic and environmental benefits worth $13.6 billion by 2035.

The study highlights the importance of implementing a fuel-efficiency standard to encourage the adoption of zero- and low-emission vehicles, while acknowledging that there may be modest price increases for petrol and diesel vehicles.

[chriswick47]

Inflation Slows, Confidence Grows Central Bank Governor Elvira Nabiullina told reporters that inflation is finally cooling off. April’s numbers clocked in around 6%, down from March’s 7%, and that drop gave the bank just enough breathing room to act. “We are more confident that the trend is sustainable,” Nabiullina said, though she quickly added that this wasn’t a green light for freewheeling rate cuts. “If inflation picks up again—we’ll respond.” Translation: this is a cautious dip into rate-easing waters, not a cannonball splash into cheap money.