Analysis

TOKYO, March 24 (Reuters) - The Bank of Japan's meeting last week passed with no surprises, but for a careful BOJ watcher its message on the need to remain vigilant on food-driven inflationary pressures had an important takeaway: Rates could be raised sooner than expected.

On 12 March 2025, the United States will release the Consumer Price Index (CPI) data for February. Market consensus predicts that the year-over-year growth rates for Headline CPI and Core CPI will reach 2.9% and 3.2%, respectively, both lower than the previous figures of 3.0% and 3.3%.

Given the slowdown in PCE—one of the Federal Reserve’s most closely watched metrics—and early signs of economic weakening, we expect the central bank to cut interest rates 3-4 times by the end of this year, significantly more than the two cuts currently priced into market expectations.

Traders who bet on the future course of inflation foresee the sharpest divergence for three years between the U.S. and euro zone, driven by different growth paths, tariff threats and cheaper European energy after a potential Ukraine peace deal.

Policymakers around the world may not like the word 'stagflation,' but they're going to hear a lot more it this year if the import tariffs U.S. President Donald Trump is threatening open up a global trade war.

TradingKey - The FOMC’s top concerns remain inflation and employment. The January CPI report shows inflation diverging from the Fed’s 2% target, while Thursday’s PPI also climbed steadily, reinforcing the upward trend in prices. Recent job data suggests the labor market does not appear to need furth

In a world where information, money and asset prices move faster than at any time in history, one key element of financial markets remains resolutely resistant to change: forecasting.

Ahead of the release of the US January CPI report, inflation expectation surveys from the University of Michigan and the New York Fed have shown a rare divergence. With the escalation of Trump's tariffs, the trajectory of US inflation has garnered significant attention.

Fed’s preferred measure of inflation is the personal consumption expenditures (PCE) index and it usually comes out at the end of the following month. So, December 2024’s PCE figure is being released by the Bureau of Economic Analysis (BEA) next Friday (31 January) before the market opens.

The European Central Bank (ECB) Governing Council member Yannis Stournaras said on Wednesday that the Eurozone is on the cusp of sustainably reaching 2% inflation, putting the onus on officials to avoid undershooting that goal, per Bloomberg.

Yuzo Kano,  founder and CEO of leading Japan-based exchange Bitflyer, says that Modern Monetary Theory (MMT) could lead to all kinds of economic and societal ills, including runaway inflation and loss of faith in money.

The Federal Reserve is likely to keep the 50 basis point rate cut option in its back pocket as the pace of the economic slowdown is screaming out for a rescue with big rate cuts, according to analysts at Capital Economics.

U.S. producer prices rose less than anticipated in July, with a 0.1% increase due to cheaper services offsetting higher goods costs, reflecting ongoing inf

As the latest U.S. Consumer Price Index (CPI) data approaches, Bank of America (NYSE:BAC) analysts are weighing the potential market outcomes, suggesting t

The consumer price index (CPI) data for June surprised to the downside but some of that surprise should reverse in July, Bank of America (NYSE:BAC) economi

Investing.com -- Bets on Federal Reserve September rate cut were given a major boost this week following a steeper-than-expected slowdown in inflation last