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.
What do global risks and rising interest rates mean for the economy? We talked to
Prof. Dr. Ernest Gnan, Secretary General of SUERF – The European Money and Finance Forum and former Head of the Economic Analysis Department of the Oesterreichische Nationalbank.
The mood on the capital markets has deteriorated further over the last months. In a comprehensive market update, Gerald Stadlbauer, Head of Discretionary Portfolio Management at Erste Asset Management, explains why stamina is needed in the current situation.
So far, the year 2022 has brought significant price losses on the stock markets. Inflation and rising interest rates are often cited as the reason. But why is that the case?
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?
