"Russia’s Central Bank raised its key #InterestRate from 19% to a historic 21% on Friday"

"seasonally adjusted price growth last month rose to 9.8% year-on-year from 7.5% in August. Core #inflation increased to 9.1% from 7.7% over the same period."

"russia has faced volatile prices since it sent troops into #Ukraine in February 2022"

"#russia is set to spend almost 9% of its GDP on #defense and #security this year"

#ArrestPutin #StopRussianAggression #ArmUkraineToWIN

https://www.themoscowtimes.com/2024/10/25/russias-central-bank-raises-key-rate-to-historic-21-signals-aggressive-fight-to-curb-inflation-a86806

#Fed chair Powell: ‘The time has come’ for #InterestRate cuts

Jerome Powell’s speech in Jackson Hole, Wyo., means rates will probably lower at the #CentralBank’s mid-September meeting. But he didn’t say how much.

#economy
https://www.washingtonpost.com/business/2024/08/23/fed-powell-jackson-hole-rate-cuts/

The #US #economy grew faster than expected in the second quarter, but #inflation subsided, leaving intact expectations of a Sept #InterestRate cut from the #FederalReserve.

#GDP increased at a 2.8% annualized rate last quarter, the #Commerce Dept’s Bureau of #Economic Analysis said in its advance estimate of 2nd-quarter GDP on Thurs. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.

#Bidenomics #Harris2024
https://www.reuters.com/markets/us/us-economic-growth-regains-steam-second-quarter-inflation-slows-2024-07-25/

The Bank of Canada announced it is lowering its key interest rate by a quarter of a percentage point.

This marked the second consecutive time the central bank cut its key interest rate in the face of slowing inflation.

#Canada #InterestRate #BankofCanada

https://www.cbc.ca/news/business/bank-of-canada-july-meeting-1.7273417

Happy #Jobs Day Friday!

272,000 new jobs exceeded my expectations

Sunshine Corner subscribers received Issue 2024:6 yesterday with these expectations and thoughts on the #interestrate decision next week. In short:

Progress on taming #inflation is not likely enough for a rate cut next week,

Continued labor market strength points to the same outcome, and

I'm looking ahead to July or September for the first cut.

Subscribe for more: https://buttondown.email/srrconsulting-sunshine/archive/sunshine-corner-20246/
#economics #Realestate

One of the problems with the ONS' realisation that labour force survey data is based on too narrow a statistical base (prompting the current period of revisions in method), is not just BoE #interestrate decisions may have been partly based on a distorted view of the labour market, but also that the prevailing narrative of the UK's difficulties with long term sickness may have been built on a foundation of inaccurate evidence...

It'll be interesting to see what emerges from ONS 'new' evidence

As #retail #inflation continues to fall (but of course prices keep going up, just more slowly), will the #BoE think its #interestrate policy is working or carry on taking the Catherine Mann position that more pain is needed to get down to the target of 2% even if this means a #recession...

It'll be more 'if its not hurting its not working' rhetoric from Threadneedle St. I suspect, claiming its all a 'price worth paying' when its not them that are paying... but hey, I've said all this before!

Economic activity is down as #inflation drives down sales volumes, the BoE's #interestrate policy is explicitly aimed at 'damping down' the economy & real wages continue to stagnate/fall....

So you wont be surprised to know that a #recession now looks likely for the Autumn.

Cue: #JeremyHunt & #RishSunak telling us that 'if its not hurting its not working'... & the 'price is worth paying' to defeat inflation.

But, as always its not them or their mates hurting or paying the (acceptable?) price

Meanwhile in #Italy:

A #windfall tax of 40% is being imposed on #banks #interestrate spread (the net profit on returns by virtue of the difference between rates to lenders & borrowers)....

Having looked at the extra level of profits made in the first half of this year, the one-off tax will be used to cut taxes & help #mortgage holders.

Despite loud demands in the UK for something similar, the #Tories are unlikely to turn against their chum in #financialservices, at least not yet!

Washington State enacted a 7% capital gains tax levied on annual profits in excess of $250,000, and made a *fortune*, $600m more than projected in the first year, despite a 25% drop in the stock market and blistering #InterestRate hikes:

https://www.theurbanist.org/2023/06/01/lessons-from-washington-states-new-capital-gains-tax/

--

If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/06/03/when-the-tide-goes-out/#passive-income

1/

Wouldn't it be nice if, for once, when there's an interest rate rise, building societies would get in touch to say how this might benefit your savings? But no, it's all about charging more for mortgages, never about paying interest to savings customers.
#InterestRate