June 14, 2024
United States:
Fed’s Mester Wants Few More Months of Good Inflation Before Cuts
Federal Reserve Bank of Cleveland President Loretta Mester called the latest data showing softer inflation “welcome news,” and said she would like to see a few more months of good data before considering lower interest rates.
“I would want to see a few more months of good inflation data: inflation coming down, the short-run inflation expectations starting to move down,” Mester said Friday in a CNBC interview.
Europe:
ECB’s Centeno Urges Prudence on Rates as Inflation Nears 2%
The European Central Bank must be prudent in bringing interest rates to levels that neither stimulate nor constrain the economy, Governing Council member Mario Centeno said — suggesting officials will take some time before cutting again.
Data will reveal how quickly inflation is retreating and how the economy reacts to looser monetary policy, Centeno told Bloomberg. He refused to be drawn on when the ECB would act next, having lowering its deposit rate from a record 4% last week.
Asia:
BOJ’s Lack of Detail on Bond Buying Cuts Leaves Yen Vulnerable
The Bank of Japan is making investors wait until its July meeting for details on its paring of bond buying, leaving the yen vulnerable to further declines.
The central bank’s decision Friday to stand pat on interest rates was widely expected, but traders were surprised by it just flagging a cut in debt purchases without laying out any figures or a timeline.
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