Stimulus measures must not spur inflation -Germany's Scholz

Germany's Chancellor warns that economic stimulus measures must be carefully designed to avoid fueling inflation, after the cabinet approves corporate tax cuts to boost growth; meanwhile, German consumer price inflation stands at 6.4%, slightly lower than the previous month but higher than expected.

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8/3/2023

Business

- The Bank of England raised its benchmark interest rate to 5.25% despite a slowdown in consumer-price rises, leading to speculation about when the central bank will end its monetary tightening. - House prices in Britain fell by 3.8% in July compared to the same month last year, the sharpest decline since July 2009, but the average house price was still higher than earlier this year. - The Bank of Japan raised its cap on the yield of Japanese ten-year government bonds from 0.5% to 1%, causing the yield to soar to nine-year highs. - Turkey's annual inflation rate increased to 47.8% in July, the first rise since October, due in part to a new tax on fuel. - The euro area's economy grew by 0.3% in the second quarter, with much of the growth attributed to changes in intellectual property shifting by multinationals based in Ireland for tax purposes. Germany's GDP growth rate was zero, and Italy's fell by 0.3%.

8/30/2023

Euro Breaking News: Stubborn German Inflation, US ADP and GDP Lift EUR/USD

German inflation beats forecasts, complicating the ECB's task, while US labor data eases and GDP is revised lower, causing the dollar to weaken and the euro to strengthen.

9/19/2023

Germany Braces for Sharp Economic Slowdown As OECD Forecasts Contraction in 2023

Germany is projected to be the most heavily impacted by the global economic slowdown due to higher interest rates and weaker global trade, according to the Organisation for Economic Co-operation and Development (OECD), with its economy likely to shrink this year alongside Argentina and experience a weaker 2024. The slowdown in China, inflationary pressures, and tightening monetary policy are among the factors affecting Germany's growth. The OECD also warned of persistent inflation pressures in various economies and called for central banks to maintain restrictive interest rates until underlying inflationary pressures subside.

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Posted 8/30/2023, 12:00:54 PM