Central banks are responding to high inflation by raising key interest rates. Further key rate hikes are likely this week as well.
Last week, three major central banks have raised their key interest rates further. By nature, however, it is not easy to find the right key interest rate level – especially in the current environment.
The central banks want to achieve their long-term inflation target of 2%. In order to achieve this goal, they have raised key interest rates and are implementing a restrictive monetary policy. The higher key interest rates will weaken economic growth and also the labour market. Whether this can be achieved without a recession or whether there will be a “soft landing” is currently the subject of heated debate.
This week, the highly acclaimed Jackson Hole Economic Symposium will take place. Fed Chairman Jerome Powell’s speech will be the center of attention.
Many economic indicators point to weakening economic momentum. Meanwhile, the US labor market continues to be very robust, which recently mitigated the immediate risks of recession in the United States.
For more than 20 years, the euro has been the instrument of payment for around 340 million people. What is the current state of our currency and what opportunities and challenges does the euro face?
Ahead of the upcoming interest rate decision by the Federal Reserve, a number of economic indicators point to increasing risks of growth or recession. There are also uncertainties regarding the further development of inflation and the effectiveness of monetary policy measures.
Gerhard Winzer, Chief Economist at Erste Asset Management, provides an overview of recent economic developments and explains, among other things, what structural problems the euro is facing.
Since the beginning of the year, the bond markets have been in a bear market. What are the implications for the economy? Erste Asset Management Chief Economist Gerhard Winzer analyzes three models in relation to the development of inflation and their implications.
Inflation, the war in Ukraine and monetary policy are driving the markets and stoking fears of an impending recession. Initial economic indicators also point to gloomy growth prospects.