Now Tow each central bank seems to act on its own. They do not seem to consider inflation as a common enemy anymore, unlike what they did when inflation rose to ravage the global economy from second half of 2021, but now seen receding. The United States Federal Reserve (the Fed), whose inflation target is 2% finally decided to pause its interest change on June 14, 2023. That marked the snapping up of a string of 10 consecutive rate hikes since July last year for 2022 for fighting "the country's worst outbreak of inflation in 40 years". The inflation rate was at its highest in US in April 2022 at 9.1%. Anti-inflationary measures thereafter eventually produced results. Inflation in US was cooling off with a clear downward trend from 6.4% in January 2023, 6.0% in Feb, 5.0% in March, 4.90% in April and 4.0% in May. June inflation data would be available around July.
The United Kingdom (UK), and the Eurozone, comprising 22 countries with a common currency have been facing persistent inflation, exceeding their target rate at 2%. Inflation in UK has been 8.70% for the past two months in 2023 (April and May). In the euro zone it was still above 6%, though showing somewhat a declining trend of 6.96% in April and 6.10% in May. While the Bank of England (BOE) raised the interest rate by 50 basis points to 5%, European Central Bank (ECB) effected a more moderate increase in its interest rate on June 15, to 4% in June, a 22-year high, from the May rate of 3.75%.
India, an emerging economy has been experiencing a downward trend in its inflation beginning from the first month of 2023 (6.52% in Jan, 6.44% in Feb, 5.66% in March and 4.70% in April). The Reserve Bank of India (RBI) paused the interest rate change in April and continued its policy interest rate at 6.50%. As inflation came down to 4.25% in May, RBI again paused the interest rate change on June 8, for the second time, maintaining the rate at 6.50%.
Esta historia es de la edición July 1 - 31, 2023 de BUSINESS ECONOMICS.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 1 - 31, 2023 de BUSINESS ECONOMICS.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
A new chapter in Singapore's Leadership: continuity and change
The departure of Prime Minister Lee Hsien Loong marks the beginning of a new era in Singapore, as Lawrence Wong ascends to the post of the country’s fourth Prime Minister.
Disabled children: Education and rehabilitation
Child disability is, in fact, a serious and challenging problem of the world.
India's 2024 Elections: Is it a fight between a macro & micro view of development?
The seven phase massive election process in the largest democracy of the world is on; and the churn throws up hope as well as despair.
Empowering India's workforce: launch of comprehensive skill training programme
Srihari Global IISD Foundation, in collaboration with Birla Open Minds and SAHAJ Retail Private Limited, has launched a groundbreaking skill training program aimed at enhancing employment opportunities and fostering career growth across India.
DVC achieves record power generation in its 75-year journey
The Damodar Valley Corporation (DVC) has accomplished a significant milestone by generating 43.32 billion units of electricity during the fiscal year 2022-23.
"Sticky" inflation is still a global worry!
While major world economies have successfully tackled inflation over the last six months by bringing retail inflation (the monthly consumer price index-based inflation) close to the central bank target rates of 2% with and emerging economies including India’s Reserve Bank of India have achieved some measure of success, all is not well yet.
Emerging alarming trends in India's financial sector
The onset of the new financial year FY25, commencing on April 1, 2024, does not promise any relief from the economic challenges persisting since the previous fiscal year. In recent months, various banks and financial institutions in India, including Bank of Baroda, HDFC Bank, Kotak Mahindra Bank, PayTM, IIFL, JM Financial, and Paisa Lo, have been making headlines for all the wrong reasons.
Economic insights from China
Economic indicators released by Chinese authorities, media outlets, and researchers suggest a recent downturn in China’s economic fundamentals.
Rubber planters confront challenges of declining prices, labour shortages, and erratic monsoons
Natural rubber (NR) stands as a crucial plantation commodity in India.
Is the Indian Tea Industry at a crossroads?
The Indian tea industry marks a significant milestone this year as it celebrates two centuries of journey since its inception.
