August 14, 2024
United States:
Core US Inflation Eases a Fourth Month, Sealing Fed Rate Cut
Underlying US inflation eased for a fourth month on an annual basis in July, keeping the Federal Reserve on track to lower interest rates next month.
The so-called core consumer price index — which excludes food and energy costs — increased 3.2% in July from a year ago, still the slowest pace since early 2021. The monthly measure rose 0.2%, a slight pickup from June’s surprisingly low reading, Bureau of Labor Statistics figures showed Wednesday.
United Kingdom:
BOE Says Key Market Rate Is Working Fine After 70-Day Freeze
Bank of England officials are downplaying an abnormal paralysis in the UK’s most important market interest rate, saying it remains efficient in reflecting what’s happening in markets.
The Sterling Overnight Index Average, or SONIA, has stayed at exactly five basis points below the BOE’s rate since May 7 — or 70 business days. The previous record in data going back to 1997 was just four sessions.
Asia:
China Regulator Warns of Rate Risks as Bond ETF Redemptions Rise
China’s top financial regulator warned asset management firms about interest rate risks, as redemptions from domestic bond investment funds quickened following authorities’ moves to tame buyer interest.
The National Financial Regulatory Administration urged banks’ wealth management units to strengthen their risk-management mechanisms during a meeting in the eastern city of Qingdao on Friday, according to people familiar with the matter, who asked not to be named discussing private information. The regulator didn’t immediately reply to a request for comment.
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