Bank of England Raises Interest Rates Sixth Time to 13-year High 1.75%

The Bank of England MPC at its June meeting Thursday raised the key bank rate by 50 bps from 1.25% to 1.75%, as expected. The vote was 8-1 expected (Tenreyro voted to raise bank rate 25 bps to 1.50%). The BoE will be particularly alert to indications of more persistent inflationary pressures, and will, if necessary, act forcefully in response. Bank says policy is not on a pre-set path Inflation is at the highest rate for a decade, the sharpest … Continue reading “Bank of England Raises Interest Rates Sixth Time to 13-year High 1.75%”

Germany Manufacturing PMI Contraction Deepens as Future Expectations Sank

The latest S&P Global PMI™ for July showed the first contraction of activity in the Germany economy, in 2022 and the worst performance for over two years. Germany’s PMI Composite Output Index registered 48.0, down from 51.3 and a 25-month low. Declines in both domestic and export demanda combination of an uncertain business environment, supply shortages and stretched client budgets.Expectations about the future sank into negative territory for the first time since the full-blown pandemic in May 2020. The euro … Continue reading “Germany Manufacturing PMI Contraction Deepens as Future Expectations Sank”

European Manufacturing PMI in Contraction as it Declines for Sixth Consecutive Month in July

European countries manufacturing sector fell into contraction for July according to the latest S&P Global PMI™ data with missing expectations. The eurozone saw output decline again. The euro area and the UK were some of the larger manufacturing economies to see new business decline. Business optimism in most areas dipped to a two-year low, inflationary pressure remained elevated and supply chains also stayed stretched. The S&P Global Eurozone Manufacturing flash PMI® fell to 49.6 (expected 51.0; last 52.1) 25-month low. and … Continue reading “European Manufacturing PMI in Contraction as it Declines for Sixth Consecutive Month in July”

European Manufacturing PMI Declines For Fifth Consecutive Month in June

European countries manufacturing sector remains in expansion for June according to the latest S&P Global PMI™ data with most beating expectations. The eurozone saw output decline, however. The euro area and the UK were some of the larger manufacturing economies to see new business decline. Business optimism in most areas dipped to a two-year low, inflationary pressure remained elevated and supply chains also stayed stretched. The S&P Global Eurozone Manufacturing PMI® fell from 54.6 in May to 52.1 in June, its … Continue reading “European Manufacturing PMI Declines For Fifth Consecutive Month in June”

Most Asian Manufacturing PMI Remain in Expansion Beating Expectations in June

Asian countries manufacturing sector remains in expansion for according to the latest S&P GlobalPMI™ data. Severe price pressures continue as companies generally set higher selling charges in response to rising input costs. Higher costs for energy and shipping in particular are impacting. An easing in COVID restrictions in China started a recovery in the world’s largest manufacturing economy. Headwinds remain with tapering growth of new order intakes, lower business confidence and stretched global supply chains. Asia Manufacturing PMI June 2022  … Continue reading “Most Asian Manufacturing PMI Remain in Expansion Beating Expectations in June”

Bank of England Raises Interest Rates Fifth Time to 13-year High 1.25%

The Bank of England MPC at its June meeting Thursday raised the key bank rate by 25 bps from 1.00% to 1.25%, as expected. The vote was 6-3 vs 8-1 expected (Haskel, Mann, Saunders voted to raise bank rate 50 bps to 1.50%). The BoE however may act more forcibly if more persistent inflation pressures are indicated. The Bank is balancing bringing inflation under control without plunging the economy into a recession. The move came a day after the Federal … Continue reading “Bank of England Raises Interest Rates Fifth Time to 13-year High 1.25%”

Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023

The Bank of England MPC at its May meeting raised the bank rate by 25 bps from 0.75% to 1.00%, as expected. The vote was 6-3 vs 8-1 expected (Haskel, Mann, Saunders voted to raise bank rate 50 bps to 1.25%). The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve raised rates by a half of a percent at their May meeting. Inflation is at the … Continue reading “Bank of England Raises Interest Rates Fourth Time to 1.00% and Forecast 10% Inflation and Recession Early in 2023”

Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority

The Bank of England MPC at its March meeting voted 8-1 Cunliffe dissented in favor of maintaining bank rate at 0.50%) to raise the Bank Rate from 0.50% to 0.75%. The BoE said some further modest tightening may be appropriate in the coming months. The move followed a day after the Federal Reserve Raised Rates for the first time since 2018. Inflation is at the highest rate for a decade, the sharpest annual incline for 10 years and well above … Continue reading “Bank of England Raises Interest Rates Third Time to 0.75% With Inflation the Priority”

Bank of England Raise Interest Rates by 25 bps from 0.25% to 0.50% as Expected

The Bank of England MPC at its February meeting voted 5-4 (Ramsden, Saunders, Haskel, Mann wanted to hike by 50 bps to 0.75%) to raise the Bank Rate from 0.25% to 0.50%. The BoE voted unanimously to reduce the stock of UK government bond purchases Inflation is at the highest rate for a decade, the sharpest annual incline for 10 years and well above the Bank’s 2% target.  The BoE has warned there was unlikely to be any reprieve over … Continue reading “Bank of England Raise Interest Rates by 25 bps from 0.25% to 0.50% as Expected”

The German DAX Finished Up for the Third Straight Positive Year up 15.79% for 2021

Germany’s Blue-Chip DAX 40 index ended its last trading session of 2021 at 15,885 on the last trading day of 2021, up 15.79% for the year after being up 3.6% in 2020. German stocks have recovered from the coronavirus crash in March which sent the DAX to a near seven-year low on March 16th, 2020. German stocks were the best performer among European stock indices for the year. The German stock market rebound continued from the depths of despair aided … Continue reading “The German DAX Finished Up for the Third Straight Positive Year up 15.79% for 2021”