Articles about “key interest rate”
What is the key interest rate?
Ahead of the ECB’s upcoming interest rate decision, there is much discussion about the central banks’ interest rate policy and the key interest rate – will it be lowered or not? Its development has a significant influence on the economy and the financial markets. In this article, we discuss the role of the key interest rate and which interest rates are relevant.
Best of Charts: News from the inflation
Even though inflation has weakened recently, it remains an important topic for private individuals as well as for companies and the markets. What might happen next in terms of inflation and how long will the restrictive monetary policy stay with us? A look at some important financial charts will shed some light on this.
Silicon Valley Bank – Impact on the Stock Markets
The turbulences surrounding the US Silicon Valley Bank (SVB) are currently keeping the markets busy. After the bank was closed last Friday, a comprehensive package of measures followed over the weekend to avoid possible consequences. In this blog post, the experts of our Investment Division explain what exactly happened and how they assess the situation.
The Good, the Bad and the Hawk
Last week brought good, bad and inflation-fighting news, all from the US. At the start of the new trading week, the focus is on the turbulence surrounding Silicon Valley Bank.
Party Crashers
Improved growth prospects for China and Europe and hopes of a sustained decline in inflation have supported the markets since the beginning of the year. However, sharp central bank rhetoric and weak growth indicators in the USA could prove to be spoilers.
Tug of war
At present, indicators on inflation and economic activity are competing to determine which of the two categories is more important for the financial market. Read more in the current market commentary by Chief Economist Gerhard Winzer.
Review and outlook: “2022 turned out to be a tough year for equities”
On the stock markets, the year 2022 was characterized by high uncertainties and volatility. Tamás Menyhárt, senior fund manager at Erste Asset Management and equity expert, therefore draws an initial summary of the stock market year and ventures an outlook for the coming months on the markets.
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.
Is now the right time to invest in equities?
Global equity markets have been under pressure for several months. The short recovery phase in the summer did not last long. What are the reasons for the bear market and when could be a good time to enter?
Fed remains on course
The latest US labor market data suggest that the Fed will remain on its course of more restrictive monetary policy. “As long as job growth remains strong and unemployment and participation rates remain low, the Fed will maintain its basic restrictive stance”, writes Head Economist Gerhard Winzer in his market commentary.
Rapid and synchronous key rate hikes
Central banks are responding to high inflation by raising key interest rates. Further key rate hikes are likely this week as well.
Monetary tightening even as growth slows further?
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.
Jackson Hole – Focus on Monetary Policy
This week, the highly acclaimed Jackson Hole Economic Symposium will take place. Fed Chairman Jerome Powell’s speech will be the center of attention.
Very tight labor market in the USA
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.
US central bank will start reducing bond holdings in October
The most important central bank in the world, the Federal Reserve of the USA, has announced a historic decision as a result of its FOMC meeting on 20 September: the central bank balance sheet, hugely inflated in the wake of the bond purchase programme, will be gradually reduced from October onwards. Generally speaking this is […]
Which factors drive equity markets?
It is almost impossible to speak with fund managers and not address the economy or monetary policy. Why is that so? This blog entry will try to answer the question on the basis of data from the US equity market from 1950 onwards.