The UK’s central bank said it wouldn’t rush through an emergency interest-rate increase, prompting another bond and sterling sell-off.
- 15 mins ago
- Hans van Leeuwen
There are no wage or currency pressures that would justify the RBA following the Fed into aggressive rate rises.
- Craig Emerson
- World politics
Economists and financial market experts dispute there are deep policy parallels between Kwasi Kwarteng’s approach and that of former UK PM Margaret Thatcher.
- Chris Giles and Delphine Strauss
Investors are in a world of pain as central banks curtail their experiment with ultra-low interest rates, while analysts point to the parallels with the 1987 market collapse.
- Karen Maley
The mantra that investors had no alternatives to stocks has given way to a panoply of actual choices.
- Denitsa Tsekova
- Global economy
The Bank of England is tapping the brake, Liz Truss is hitting the accelerator. Nobody knows which way the economy will go, and the markets want to get off.
- Hans van Leeuwen
With sharp rises in interest rates and currency interventions, central bankers insist they will vanquish inflation, whatever the cost.
- Chris Giles and Valentina Romei
The pound plummeted and bond yields went into freefall as the new British government unleashed huge tax cuts not seen since the 1970s.
- David Milliken and Andy Bruce
The move to 2.25 per cent was backed by five of the nine-member Monetary Policy Committee, including governor Andrew Bailey.
- Philip Aldrick and David Goodman
A reverse currency war is in full flow, with monetary authorities across the world now ditching their standard quarter-point increases.
- Claire Jones
Reserve Bank deputy governor Michele Bullock sees worrying signs in Europe, the US and China.
- Jonathan Shapiro
The RBA will not pay a dividend to the government “for a number of years” as it nurses balance sheet losses relating to its bond purchase program that could top $58 billion.
- Jonathan Shapiro and John Kehoe
Critics of negative interest rates insist the policy damaged European lenders, while some central bankers say it boosted loan growth.
- Martin Arnold and Kana Inagaki
The US central bank is expected to publish its first “dot plot” since June after months of persistently high inflation.
- Colby Smith
Businesses with pricing power will be able to pass wage increases on to customers. Central bankers wanting to earn their keep need to crack that conundrum, rather than chastise workers asking for more.
- The Lex Column
Governments may be forced to acknowledge their own complicity in the inflation that they are so keen to be rid of.
- Adrian Blundell-Wignall
Markets are increasingly betting on policymakers in the US, UK and eurozone hitting peak rates at a faster pace.
- Valentina Romei
A lot more will be written about the fixed-rate mortgage cliff. In the absence of solutions from fiscal policy, the RBA can partly help manage the mess it created.
- Tim Hext
- Interest rates
There has only been one economic driver of this correction: the Reserve Bank’s near-record increase in the cost of borrowing.
- Christopher Joye
The zeal with which central bankers will attack inflation creates a significant risk they engineer a hard landing, says UBS Asset Management’s head of investments.
- Alex Gluyas