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Reduction in the pace of key interest rate increases
Reduction in the pace of key interest rate increases
(c) unsplash

Reduction in the pace of key interest rate increases

More and more central banks are signalling a reduction in the pace at which they are raising key interest rates. However, as Chief Economist Gerhard Winzer explains, this does not necessarily mean that central banks are softening their focus on fighting inflation. Rather, a pause in the rate hike cycle would require a change in inflation dynamics.

Strong US dollar increases pressure on Japan’s central bank
Strong US dollar increases pressure on Japan’s central bank
(c) unsplash.com

Strong US dollar increases pressure on Japan’s central bank

The soaring US dollar is causing problems in countries outside the USA. In Japan, the Yen has weakened considerably recently because, unlike the other central banks, the Bank of Japan is sticking to its ultra-loose monetary policy. Against this backdrop, the meeting of the Japanese central bank next Friday will be more in focus than usual.