Overseas Headlines – February 15, 2023

February 15, 2023


United States:

Fed Officials Float Even Higher Rates After Brisk Inflation Data

Federal Reserve officials stressed the need for further interest-rate increases to help tame inflation, but expressed differing views about how close they are to stopping after new data showed signs of persistent price pressures.

Several officials said Tuesday that interest rates may need to move to a higher level than anticipated to ensure inflation continues to ease.



Barclays Profit Drops 8% to £1.3 Billion as Fixed Income Traders Fall Short

Barclays Plc slumped after posting a surprise drop in profit as revenue missed estimates across every major business line.

Inside the corporate and investment bank, dealmakers faced a continued drought, traders fell short of hopes and the bank recorded further losses tied to its leveraged finance portfolio. At the firm’s UK franchise, the net interest margin — a key measure of profitability — got less of a boost from rising interest rates than expected.



Asia Central Banks Rebuild Reserves as Fed Rate Bets Grow

India is leading a charge among Asia’s emerging-market central banks in rebuilding foreign-exchange stockpiles, which would help them defend their currencies if the dollar rebounds.

India, South Korea, Taiwan, and Southeast Asian countries have recouped about $132 billion since November — more than than half of what they lost last year — by soaking up dollar inflows, with a weaker greenback also boosting their portfolio valuations, according to Bloomberg calculations based on foreign-exchange data. The rupee has lagged behind EM peers partly because its central bank has been the most aggressive in rebuilding reserves.




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