Now Tow each central bank seems to act on its own. They do not seem to consider inflation as a common enemy anymore, unlike what they did when inflation rose to ravage the global economy from second half of 2021, but now seen receding. The United States Federal Reserve (the Fed), whose inflation target is 2% finally decided to pause its interest change on June 14, 2023. That marked the snapping up of a string of 10 consecutive rate hikes since July last year for 2022 for fighting "the country's worst outbreak of inflation in 40 years". The inflation rate was at its highest in US in April 2022 at 9.1%. Anti-inflationary measures thereafter eventually produced results. Inflation in US was cooling off with a clear downward trend from 6.4% in January 2023, 6.0% in Feb, 5.0% in March, 4.90% in April and 4.0% in May. June inflation data would be available around July.
The United Kingdom (UK), and the Eurozone, comprising 22 countries with a common currency have been facing persistent inflation, exceeding their target rate at 2%. Inflation in UK has been 8.70% for the past two months in 2023 (April and May). In the euro zone it was still above 6%, though showing somewhat a declining trend of 6.96% in April and 6.10% in May. While the Bank of England (BOE) raised the interest rate by 50 basis points to 5%, European Central Bank (ECB) effected a more moderate increase in its interest rate on June 15, to 4% in June, a 22-year high, from the May rate of 3.75%.
India, an emerging economy has been experiencing a downward trend in its inflation beginning from the first month of 2023 (6.52% in Jan, 6.44% in Feb, 5.66% in March and 4.70% in April). The Reserve Bank of India (RBI) paused the interest rate change in April and continued its policy interest rate at 6.50%. As inflation came down to 4.25% in May, RBI again paused the interest rate change on June 8, for the second time, maintaining the rate at 6.50%.
Denne historien er fra July 1 - 31, 2023-utgaven av BUSINESS ECONOMICS.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 1 - 31, 2023-utgaven av BUSINESS ECONOMICS.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal
Bank of Baroda (BOB) organised Mega Kisan Mela at Konkalitala in Birbhum District of West Bengal on November 18, 2024 as a part of the 7th Edition of the Baroda Kisan Pakhwada (BKP).
Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India
The delay in the disposal of cases in Indian courts remains a significant hurdle to the nation's progress.
Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi
The holy city of Varanasi, often regarded as India's spiritual and cultural heart, came alive with the splendor of Dev Deepawali on the sacred day of Kartik Purnima.
The life of Job 'Ye judge not the judgment of God' - Jesus Christ
The Holy Bible reveals through the life of Job how the Lord tests the righteous and that faith helps one to overcome life's adversities.
India has the highest potential for the garment industry, only a conducive government policy is required.
India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.
Global Public Debt may be worse than it appears, warns IMF
Global Public Debt Set to Exceed $100 Trillion, Warns IMF
The economic consequences of Trump's Presidency: A global perspective
One of the key economic factors contributing to the Democrats' loss in the US elections was the significant rise in inflation, which was initially triggered by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.
Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview
The education system in West Bengal, particularly in districts, villages, slums, and government institutions, reflects a blend of progress and ongoing challenges.
What India can expect from Trump's return
I may be too early to predict how Donald Trump's second term as president will impact the global oil market.
Stocks Surge Following Donald Trump's Election as 47th President of the USA
Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.
