EUR/USD
1.14897
0.330%
Gold
4567.98
-5.196%
Oil
96.204
-2.689%
USD/JPY
158.763
-0.683%
GBP/USD
1.33107
0.410%
GBP/JPY
211.329
-0.216%
Real-time News
The European Central Bank stated that data released in the coming period will help it assess the impact of the Russia-Ukraine conflict on the inflation outlook and related risks.Market news: It is expected that Trump and Japanese Prime Minister Sanae Takaichi will announce that GE Vernova and Hitachi will build small modular nuclear reactors in Tennessee and Alabama.On March 19th, KPMGs Chief UK Economist, Yale Seflin, stated that the Bank of Englands decision to keep interest rates unchanged on Thursday came after investors expectations quickly shifted from a gradual decline this year to a possible rate hike. She indicated that for the central bank, the key lies in the severity of the secondary effects of the energy shock and whether these effects could reignite inflationary pressures. Therefore, the central bank may disregard more dovish signals in the labor market and the overall economy, focusing instead on potential price indicators in the coming months. However, despite this stance, a rate cut later this year is still possible, provided the impact of the energy shock begins to diminish and inflation falls as expected.Callum Pickering, chief economist at Perhunt: While Bank of England officials may privately still believe the next rate adjustment is more likely to be a cut than a hike due to uncertainty surrounding the timeline of the Iran war, it would be unwise to advocate for such an adjustment.On March 19th, Suren Thiru, an economist at the Institute of Chartered Accountants, stated that Bank of England policymakers should proceed cautiously and avoid raising interest rates too quickly in an attempt to correct past mistakes. Following the surge in energy prices caused by the Middle East conflict, the Bank of England unanimously voted to maintain interest rates. While the Bank of England hopes to avoid repeating the mistake of raising rates too late in 2022, this policy is more restrictive and inflation is lower, putting policymakers in a favorable position to address the current crisis. If the war in Iran ends quickly and soaring oil and gas prices lead to a significant increase in impending inflation, the possibility of another rate cut remains. However, the likelihood of further policy easing this year is rapidly decreasing.
