April 15, 2024
United States:
Fed’s Williams Still Expects Rate Cuts to Begin This Year
Federal Reserve Bank of New York President John Williams said the central bank will likely start lowering interest rates this year if inflation continues to gradually come down.
Williams said monetary policy is in a good place, and pointed to the enduring strength of consumers and the broader economy.
Europe:
ECB’s Simkus Sees Three Rate Cuts in 2024, Chance of Fourth
European Central Bank Governing Council member Gediminas Simkus said borrowing costs will start to decline from June — predicting at least three such moves in 2024.
“I see a higher than 50% chance there will be more than three cuts this year,” Simkus told reporters Monday in Vilnius. “I see a higher than zero chance that an interest-rate cut may follow also in July. The July decision will be important in setting the trajectory.”
Asia:
China Drains Cash Via MLF for Second Month Amid Yuan Concern
China withdrew cash from the banking system for a second consecutive month, signaling its caution toward monetary easing as currency depreciation pressures mount.
The People’s Bank of China drained a net 70 billion yuan ($9.7 billion) of cash via its medium-term lending facility, while holding the interest rate on its one-year policy loans at 2.5%. The operation came even after inflation stalled last month, fueling calls for more stimulus. Officials also reduced liquidity in March via the MLF for the first time since late 2022.
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