EUR/USD
1.17896
-0.047%
Gold
4822.79
-0.389%
Oil
88.846
-0.282%
USD/JPY
158.983
0.130%
GBP/USD
1.35671
0.009%
GBP/JPY
215.698
0.150%
Real-time News
On April 15th, Ernst & Young economist Bansie Madavani stated that the conflict in the Middle East and the resulting rise in energy prices have brought a stagflation shock to the UK economy. She predicted that the UKs overall inflation rate would rise by more than 3.0% year-on-year in the coming months, while the economic growth rate is expected to be below 1.0%. She also pointed out that the prolonged energy price shock would increase the likelihood of a recession. Therefore, the Bank of England is unlikely to raise interest rates due to the direct impact of rising energy prices, and will instead adopt a wait-and-see approach.The yield on Japans 20-year government bonds fell 3.5 basis points to 3.235%.On April 15th, former US Treasury Secretary Janet Yellen stated that she still believes a US interest rate cut is possible later this year, although oil price volatility triggered by the Iran war has cast a shadow over the outlook. Yellen said, "This is actually a broad supply shock, spreading from gasoline prices to liquefied natural gas, fertilizers, food, shipping costs, and semiconductors." Yellen noted that while she doesnt rule out the possibility of raising interest rates, stable long-term inflation expectations suggest that this is unlikely at present. "I think my guess is that there might be an interest rate cut by the end of the year. I think thats entirely possible, and the most likely scenario. However, many things can happen."On April 15th, former US Treasury Secretary Janet Yellen stated that Trumps hardline approach in pressuring the Federal Reserve to lower interest rates to reduce US debt costs was nothing short of the rhetoric of a "banana republic." Speaking at the HSBC Global Investment Summit, Yellen warned about the independence of monetary policy, saying she had "never seen such a threat posed to the Federal Reserve. Would a president of a developed country frequently advocate setting interest rates to lower debt servicing costs?" she asked. "Thats common in banana republics," she said, adding that managing interest rates for government budgetary reasons has led to "hyperinflation" in some countries.Former U.S. Treasury Secretary Janet Yellen said that Federal Reserve Chair nominee Kevin Warsh lacks "credibility" in advocating for interest rate cuts.
