Latest news with #MonetaryPolicyCommittee
Reuters
6 hours ago
- Business
- Reuters
Ghana's central bank will discuss key rate in 10 days, governor says
ACCRA, July 17 (Reuters) - Ghana's central bank held an emergency meeting on Thursday to review economic data and market developments, but did not discuss its key policy rate, Governor Johnson Asiama said, adding the main meeting is in 10 days. In a statement released late on Wednesday, the Bank of Ghana said it would announce its policy decision the day after the special session. The central bank's fourth rate-setting Monetary Policy Committee meeting for the year had initially been slated to start on July 28, with the rate decision expected on July 30. At a Thursday event in the capital, Accra, the central bank governor said that members of the MPC had not discussed the policy rate at the emergency meeting. They met to "review numbers and also take stock of some of the developments in the markets to get a sense of what is going on and what our options are ahead of their meeting," Asiama said. The governor added that the Monetary Policy Committee will reconvene in 10 days to work on a policy statement. The Bank of Ghana last held a scheduled MPC meeting in May, where it opted to maintain the policy rate at 28.0%, maintaining its tight monetary policy as inflationary pressures continued to ease due to exchange rate stability and fiscal consolidation. Ghana's consumer price inflation slowed for the sixth month in a row to 13.7% in June, its lowest level since 2021, while the bellwether producer price inflation fell to 5.9% year-on-year in June compared with 10.2% the previous month. The finance minister is expected to present the cocoa-, gold-, and oil-producing West African nation's mid-year fiscal policy review on July 24.
Business News Wales
17 hours ago
- Business
- Business News Wales
Inflation Persistence Will Take ‘Some Effort' to Tackle, Says Bank of England's Mann
The 'stickiness' of inflation well above target and the expectation amongst consumers and businesses that it will continue at the same level are problems that will take 'some effort' to resolve, according to a member of the Bank of England's Monetary Policy Committee. Catherine L Mann spoke to Business News Wales during a visit to Cardiff, where she addressed the Board of Cardiff Business Club. She said she agreed with comments made earlier this week by Bank of England Governor Andrew Bailey that the 'path is downward' for the bank rate, which currently stands at 4.25%. The MPC will next meet to consider interest rates on August 7. 'I think the question is – how far and how fast?' said Catherine. 'And I think that's where differences in views on the committee come from – a difference in assessment of where the demand conditions really are and how that's playing out in the labour market with respect to employment prospects and shedding of labour. 'That's on the one hand definitely a concern that I have as well. On the other side, there is the persistence of inflation, and the stickiness of inflation well above target, and the questions that I have in my decision making (are): what is it that's going to be an important part of the process of bringing inflation back down to target, and how fast will that happen? 'My view is that it's going to take some effort to get inflation down.' The UK consumer prices index (CPI) rose to 3.6% last month, according to the Office for National Statistics – the highest recorded since January 2024. The Bank of England's target rate is 2%. Consumers and businesses now have embedded inflation expectations, said Catherine, as wage and pricing inflations continue to run above target. Economic growth – a key priority for both UK and Welsh Governments – needs to be supply-side driven to avoid inflation rising further, she warned. 'When I think about growth as a central banker, what I want to see is supply side growth, and the demand will come along with it,' said Catherine. 'Without supply side growth, demand is a sugar high, and it does not end well.' Achieving supply-side growth was 'challenging', she acknowledged, adding that creating the right environment for productivity growth with a focus on innovation and business investment is key. The labour market element of the supply-side of the economy needs to be 'robust' to enable economic growth, and this is currently one of the most significant concerns, said Catherine. A wide-ranging discussion with the Cardiff Business Club Board included debates on the labour force, skills and training and issues around productivity. Earlier this week Catherine visited Newport where she took part in a Bank of England citizens' panel event. It was part of the Bank's Citizens' Forum Programme, which is designed to gather information from local people to complement existing data and analysis, and help inform the Bank's policy decisions. Discussions at the citizens' panel focused on the cost-of-living and the housing market.
Reuters
a day ago
- Business
- Reuters
Ghana's central bank convenes emergency MPC meeting
ACCRA, July 17 (Reuters) - Ghana's central bank convened an emergency meeting of its Monetary Policy Committee on Thursday to assess recent economic developments, the bank said in a statement. The Bank of Ghana's fourth rate-setting MPC meeting for the year had initially been slated to start on July 28, with the rate decision expected on July 30. In a statement released late Wednesday, the central bank said the MPC would "review recent developments in the economy" during the special session. The outcome of the meeting, including any policy decisions, will be announced on Friday. The Bank of Ghana last held a scheduled MPC meeting in May, where it opted to maintain the policy rate at 28.0%, maintaining its tight monetary policy as inflationary pressures continued to ease due to exchange rate stability and fiscal consolidation. Ghana's consumer price inflation slowed for the sixth month in a row to 13.7% in June, its lowest level since 2021, while the bellwether producer price inflation fell to 5.9% year-on-year in June compared with 10.2% the previous month. The finance minister is expected to present the cocoa-, gold-, and oil-producing West African nation's mid-year fiscal policy review on July 24.
The Independent
2 days ago
- Business
- The Independent
London stocks slip after reports that Trump will fire Federal Reserve boss
The FTSE 100 faded into the close to end lower on Wednesday after a White House official told Bloomberg News that Donald Trump is likely to fire Federal Reserve chairman Jerome Powell. The blue-chip index had earlier traded in the green, shrugging aside stronger-than-expected inflation data. The FTSE 100 closed down 11.77 points, 0.1%, at 8,926.55. It had earlier traded as high as 8,972.29. The FTSE 250 ended down 88.60 points, 0.4%, at 21,601.86, but the AIM All-Share rose 1.07 points, 0.1%, at 772.10. According to the Office for National Statistics, the UK annual consumer price inflation rate accelerated to 3.6% in June, from 3.4% in May. According to FXStreet cited consensus, it had been expected to remain at 3.4% in June. Costs for transport, particularly motor fuels, made the largest upward revision to the annual inflation rate, the ONS said. Core consumer prices, excluding energy, food, alcohol and tobacco, rose 3.7% annually in June, topping the FXStreet cited consensus which had pencilled in another 3.5% hike, which would have matched the May increase. The annual service price inflation rate was unchanged at 4.7% in June, the ONS said. Barclays said the 'tricky print' should keep the Bank of England 'cautious and gradual'. 'The overshoot in inflation itself is problematic but, we think, within the tolerance range of the [Monetary Policy Committee] for data outturns relative to its forecast, especially given the role played by air fares and the fact that core goods is undershooting relative to the May forecast.' Barclays felt the lack of progress on underlying services was of more concern and likely to give the central MPC members enough reason to remain cautious, even as 'we expect the labour market loosens in the coming months'. 'Governor (Andrew) Bailey has said that he is waiting to see the pass-through of a loosening labour market in inflation data before he can be more committal than gradual, and that is not present in today's print.' Barclays said Thursday's labour market data will be key. 'Altogether, we expect the committee to cut in August and remain on a gradual path for the removal of restriction to neutral, at a quarterly pace to 3.5% by February 2026.' Bank of America said the stronger-than-expected data was unlikely to derail an August rate cut. 'But there will be increased focus now on tomorrow's labour market data to validate continued easing in pay and softer employment dynamics,' BofA said. 'We expect a continued slowing in private regular pay growth to 4.8% year-on-year, unemployment to rise to 4.7%, above the BoE's forecast of 4.6% and June payrolls at minus 70,000 with May's payrolls revised upwards from minus 109,000 to minus 65,000. 'In our view labour market data would be key in determining the rate outlook,' BofA added. Stocks in New York gave back early gains, while bond yields rose and the dollar fell after the report that the US president could fire Fed chief Mr Powell. Bloomberg sources said Mr Trump discussed the possible move in a meeting with congressional Republicans on Tuesday night. The president has repeatedly expressed frustration over the central bank's decision to hold interest rates steady. Dan Coatsworth, investment analyst at AJ Bell, said: 'Markets in both the UK and US pulled back amid speculation that Trump was about to fire Powell. 'He hasn't been shy in expressing displeasure in Powell's decision-making, demanding the Fed bring down rates to help drive economic activity. He wants someone new behind the wheel at the central bank, and someone who will influence looser monetary policy.' The Dow Jones Industrial Average was down 0.3%, as was the S&P 500 index, while the Nasdaq Composite fell 0.4%. According to the Bureau of Labour Statistics producer prices rose 2.3% on-year in June, easing from a 2.7% climb in May. June's growth was tamer than expected. According to FXStreet cited consensus, a producer rise of 2.5% on-year was expected. Month-on-month, producer prices were flat in June, defying expectations of a 0.2% climb. They had edged up 0.1% in May from April. Goldman Sachs fell 1.6% despite reporting its best ever quarter for trading revenues, as they benefitted from the April volatility. Morgan Stanley fell 3.6% while Bank of America dipped 1.7%. The yield on the US 10-year Treasury was quoted at 4.48%, up from 4.43%. The yield on the US 30-year Treasury was quoted at 5.06%, up from 5.02%. The pound was quoted at 1.3473 dollars at the time of the London equities close on Wednesday, up from 1.3380 dollars on Tuesday. The euro rose against the dollar to 1.1708 from 1.1604. Against the yen, the dollar was trading lower at 147.97 compared with 148.97. In European equities on Wednesday, the Cac 40 in Paris closed down 0.6%, while the Dax 40 in Frankfurt fell 0.2%. In London, Intermediate Capital Group shares rose 3.4%, the best large-cap performer. It said the investment landscape remains 'very attractive' as it reported an increase in assets under management in its financial first quarter. The London-based private equity investment firm said assets under management were 122.58 billion dollars on June 30, the end of its financial first quarter, up 9.1% from 112.36 billion dollars on March 31, or by 3% at constant currency. Year-on-year, AUM increased 22% from 101.00 billion dollars, or by 15% at constant currency. Insurer Hiscox rose 2.6% as Morgan Stanley raised the stock to 'overweight'. Recruiter Hays fell 1.5% after Morgan Stanley cut it to 'underweight'. Diageo rose 0.6% after it said chief executive Debra Crew had stepped down with immediate effect by mutual agreement, with the chief financial officer stepping up on an interim basis. The London-based owner of Guinness and Johnnie Walker said it has started a formal search process to replace Ms Crew, which will include internal and external candidates. CFO Nik Jhangiani will take on the role of chief executive in the interim. Analysts at Citi said: 'Although Debra's tenure as CEO may have been viewed as turbulent, we note that many of the factors impacting the business were spirit industry-wide. As such we think today's initially positive share price reaction to the news is primarily driven by short-covering.' The broker added that 'until clarity on a new CEO is forthcoming, investor re-engagement in the stock is likely to remain limited'. Brent oil fell to 67.87 dollars a barrel at the time of the London equities close on Wednesday, from 68.94 dollars late on Tuesday. Gold was quoted higher at 3,371.80 dollars an ounce against 3,331.36. The biggest risers on the FTSE 100 were Intermediate Capital Group, up 67.0 pence at 2,044.0p, Hiscox, up 32.0p at 1,274.0p, 3i Group, up 60.0p at 4,210.0p, Beazley, up 13.0p at 912.0p and British American Tobacco, up 55.0p at 3,873.0p. The biggest fallers were Ashtead, down 124.0p at 4,679.0p, Croda International, down 68.0p at 2,854.0p, WPP, down 8.7p at 411.7p, Pershing Square Holdings, down 80.0p at 4,100.0p and Melrose, down 9.4p at 520.8p.
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Business Standard
2 days ago
- Business
- Business Standard
Best of BS Opinion: High drama, stark contrasts, and subtle turns
There's something timeless about watching old Bollywood films. The slow pans, dramatic lighting, and silent longing in a glance, everything was coded, layered, and deceptively simple. Unlike the flashy saturation of today's Instagram reels, those monochrome moments knew that complexity often hides in contrast. That's how the current world feels too. At first glance, it seems disparate: inflation numbers, a language row, China's strategic tone, income inequality debates, and a re-examination of India-Israel relations. But like the classics, each carries subtext, contradiction, and a black-and-white simplicity that only deepens with closer look. Let's dive in. Take India's cooling inflation. Vegetable prices dipped by nearly 19 per cent in June, pulling retail inflation down to 2.1 per cent. But under that calm surface, oils and fats jumped 17 per cent, and core inflation remains sticky. As the RBI's Monetary Policy Committee weighs holding the repo at 5.5 per cent, the script shifts from price control to long-term reforms, notes our first editorial. The good monsoon may play hero this season, but the central bank, ever the stoic lead, refuses to overact. Meanwhile, the three-language formula of NEP 2020 is sparking fresh regional drama. In Karnataka, Maharashtra, and Tamil Nadu, it's not just about learning Hindi, it's about identity, autonomy, and electoral posturing. The Centre's push is seen by some as cultural dominance, though the Madras High Court ruled that RTE funds can't be held back over NEP non-compliance. The debate is familiar, and like in black-and-white films, what's left unsaid often says the most, highlights our second editorial. Overseas, the dragon is rewriting its own script. Shyam Saran finds China's confidence growing despite economic stumbles, rooted in its reading of American decline. With PLA purges and renewed aggression towards India, Beijing is back to playing antagonist, but with a sharper edge, more willing to back Pakistan, and dismissive of Indian clout. India, Saran warns, needs to shift from reactive cameos to strategic lead. At home, Ram Singh challenges the popular belief that inequality is soaring. The World Bank's latest data suggests India now has one of the lowest consumption inequality rates globally. Critics cite missing elite data, but Singh argues that even flawed numbers show a trend: more equitable consumption, stronger welfare, and a rise in bottom-half income share. The story of India's poor isn't just poverty anymore, it's progress too. Finally, Chintan Girish Modi reviews Hostile Homelands: The New Alliance between India and Israel, where Azad Essa explores India-Israel ties not as new-age alignment but as a long-standing, pragmatic bond. Essa draws a line from secret arms deals in 1962 to the booming defence trade today, arguing ideology isn't the main glue, strategy is. Stay tuned!
