Overseas Headlines – August 5, 2021

United States:

Peak Doesn’t Mean Weak as U.S. Economic Growth Set to Cool

“The best growth of the expansion is likely behind the U.S. just as the world’s largest economy reclaims its pre-pandemic level of output. Gross domestic product likely revved up in the second quarter, fueled by the delivery of vaccinations, the unleashing of pent-up demand for services and a mixture of government and Federal Reserve stimulus.”



BOE Warns Tightening to Be Needed as Inflation Seen Spiking

“The Bank of England said inflation will peak higher than expected around 4% and warned it will need to start some “modest tightening” of monetary policy over the next three years to keep price growth under control. Michael Saunders was concerned enough to vote for bond purchases to end as soon as possible, a stance that was overruled by the rest of the eight-member Monetary Policy Committee. They judged higher inflation will be mostly transitory, while flagging the need to take their foot off the stimulus pedal to meet their 2% inflation target “in the medium term.”



Korea Consumer Confidence Dips for First Time in 2021 Amid Virus

“South Korean consumers turned less optimistic about the economy as the country grapples with its worst coronavirus outbreak to date, a development that will be closely watched by the central bank as it mulls when to start raising interest rates. The consumer sentiment index slipped for the first time this year to 103.2 in July from 110.3 a month earlier, the Bank of Korea said in a statement Wednesday. The above-100 reading indicates respondents expressing optimism still outnumbered those with pessimistic views.”

https://www.bl oomberg.com/news/articles/2021-07-27/korea-consumer-confidence-dips-for-first-time-in-2021-amid-virus?srnd=economics-vp&sref=FmvzgEwg



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