December 21, 2023
United States:
US Inflation Report to Show Fed’s Battle Is Now All But Complete
The US inflation outlook was already steadily improving in recent months, but last week, right in the middle of the Federal Reserve’s two-day policy meeting, the dam finally broke.
Monthly reports on consumer and producer prices published on the mornings of Dec. 12 and Dec. 13 indicated inflation over the last six months — as measured by the Fed’s preferred inflation gauge — has likely returned to the central bank’s 2% target on an annualized basis.
Europe:
UK Budget Deficit Jumps 27% in First Eight Months of Fiscal Year
UK government borrowing increased sharply in the first eight months of the fiscal year as the cost of helping people with the living standards crisis drove up government spending.
The deficit between April and November climbed to £116.4 billion ($147 billion), a rise of 27% from a year earlier, the Office for National Statistics said Thursday. November alone saw a shortfall of £14.3 billion, more than the £13 billion forecast by economists.
Asia:
China’s Mega Banks Cut Deposit Rates Further to Boost Growth
China’s biggest state-owned banks are launching a third round of deposit rate cuts in a year, as lenders work to maintain profitability amid shrinking margins and government policies aimed at boosting consumption and demand.
Industrial & Commercial Bank of China Ltd. said it will lower deposit rates as much as 25 basis points on some tenors starting Dec. 22. After the adjustment, the lender will pay an annual 1.45% for one-year deposits, down from 1.55%, and 1.65% on two-year deposit, down from 1.85%. It will pay 1.95% and 2% on three-year and five-year deposits, down from 2.2% and 2.25%, respectively.
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