Latest news with #inflation
Reuters
14 minutes ago
- Business
- Reuters
South African rand holds gains after SARB focuses on lower inflation target
JOHANNESBURG, May 30 (Reuters) - The South African rand held most of the previous day's gains in early trade on Friday, after the central bank stressed its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was "more attractive" and said it would continue to consider scenarios based on that target at future rate meetings. "Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand," ETM Analytics said. Other factors that point to more rand resilience include a solid trade surplus, tight credit cycle and signs of prudence in government finances, the research firm added in a note. At 0650 GMT, the rand traded at 17.8425 against the dollar , about 0.1% weaker than Thursday's closing level. Weighing against the rand was a stronger dollar on global markets . The benchmark 2035 government bond was stronger in early deals, as the yield fell 4 basis points to 10.13%.
Yahoo
an hour ago
- Business
- Yahoo
Gold Falls as Traders Await US Data for Clues on Tariff Impacts
(Bloomberg) -- Gold fell, putting it on track for an almost 2% weekly loss, amid a technical pullback in prices ahead of key US economic data. NYC Congestion Toll Brings In $216 Million in First Four Months The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together The precious metal fell as much as 0.8% on Friday, as investors awaited the US personal consumption expenditures price index — the Federal Reserve's preferred inflation metric due later today. Markets will be assessing the report, which will offer an insight into real consumer spending and wage growth in April, for clues on how President Donald Trump's global trade war has impacted the economy. The selloff was also driven by technical factors ahead of the data release, according to Kelvin Wong, senior analyst at Oanda Asia Pacific Pte. 'The price action in gold has twice failed to break above the key near-term resistance level of $3,328 — both in the US session yesterday and again early in the Asian session today,' he said. Still, despite the declines this week, bullion's haven appeal remains intact as markets were once again rattled by uncertainties surrounding Trump's tariff agenda, after a federal appeals court on Thursday gave Trump a temporary reprieve from a ruling threatening to throw out the bulk of his planned levies. Tensions with China also resurfaced this week, with US Treasury Secretary Scott Bessent characterizing trade talks with Beijing as 'a bit stalled.' Earlier in the week, the White House announced it would start revoking Chinese student visas, while also introducing new restrictions on the sales of chip design software — prompting an angry rebuke from Beijing. All that is likely to reinforce the haven appeal of gold, which Goldman Sachs Group Inc. said this week would remain a hedge against inflation in long-term portfolios along with crude. Spot gold was down 0.5% to $3,300 an ounce as of 1:40 p.m. in Singapore. The Bloomberg Dollar Spot Index edged up, after fluctuating in the previous session. Silver, palladium and platinum all declined. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 hours ago
- Business
- Bloomberg
Kenyan Inflation Remains Below 5% for Longest Run in 15 Years
Kenyan annual inflation remained below the 5% midpoint of the central bank's target range for a 12th straight month, the longest stretch since at least 2010, strengthening the case for another interest-rate cut. Consumer prices rose 3.8% in May, compared with 4.1% in April, the Nairobi-based Kenya National Bureau of Statistics said Friday in a statement. Core inflation accelerated to 2.8%, compared with 2.5% in April.
Yahoo
2 hours ago
- Business
- Yahoo
BOJ's Ueda calls for vigilance over food inflation risks
By Leika Kihara TOKYO (Reuters) -The Bank of Japan must be vigilant to the risk rising food prices could push up underlying inflation that is already near its 2% target, Governor Kazuo Ueda said, signaling the central bank's readiness to continue its rate hikes. The BOJ keeps interest rates low as inflation expectations, or the public's perception on future price moves, stand between 1.5% and 2% - the highest in 30 years though still below its 2% target, Ueda said in a speech at a BOJ-hosted conference. But a renewed rise in food prices, particularly a 90% spike in the price of rice, is pushing up not just headline but underlying inflation, which is typically influenced mostly by improvements in the economy and a tight job market, Ueda said. "Our baseline view is that the effects of food price inflation are expected to wane," he said. "However, given that underlying inflation is closer to 2% than a few years ago, we need to be careful about how food price inflation will impact underlying inflation," he added. The remarks come as the BOJ closely monitors economic risks from higher U.S. tariffs as well as domestic inflationary pressures, in judging how soon to resume interest rate hikes. Although the BOJ downgraded its forecasts due to trade policy uncertainties, it expects underlying inflation to gradually move toward its 2% target over the second half of its forecast horizon running through fiscal 2027, Ueda said. "To the extent that incoming data allows us to gain more confidence in the baseline scenario, as economic activity and prices improve, we will adjust the degree of monetary easing as needed" by raising rates, he said. SUPPLY-SIDE CHALLENGES Japan's core inflation hit 3.5% in April, accelerating at its fastest annual pace in more than two years due largely to a 7% surge in food costs, raising the odds of another rate hike this year. But the central bank has signaled the need to go slow in raising rates to ensure Japan sees inflation durably hit 2% backed by robust domestic demand and steady wage hikes, rather than rising raw material costs. Stubbornly high food prices, blamed largely on rising import costs, have complicated the BOJ's rate decisions by simultaneously hurting consumption and keeping headline inflation well above its target. While central banks typically look through the impact of supply shocks on inflation, that approach was criticised by academics as flawed after U.S. and European central banks were forced to hike rates aggressively after being caught off guard by a spike in inflation caused by Russia's invasion of Ukraine. "I think we have concentrated too much in policy instruments that (work) through the aggregate demand side," Agustin Carstens, General Manager of the Bank for International Settlements (BIS), told the same conference. "Now, we have to work more" in understanding supply-side factors that affect inflation, he added. The BOJ ended a decade-long, massive stimulus programme last year and in January raised short-term interest rates to 0.5% on the view Japan was on the cusp of durably meeting its 2% inflation target. While the central bank has signalled readiness to raise rates further, the economic repercussions from higher U.S. tariffs forced it to cut its growth forecasts and complicated decisions around the timing of the next rate increase. A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 hours ago
- Business
- Reuters
Kenya inflation at 3.8% year-on-year in May
NAIROBI, May 30 (Reuters) - Kenya's inflation (KECPI=ECI), opens new tab fell to 3.8% year-on-year in May from 4.1% a month earlier, the statistics office said on Friday.
