Overseas Headlines – February 7, 2023

February 7, 2023


United States:

Fed’s Kashkari Says Strong Jobs Data Show Need for More Hikes

Federal Reserve Bank of Minneapolis President Neel Kashkari said January’s strong labor-market report shows the US central bank needs to keep raising interest rates.

“Right now I’m still at around 5.4%,” Kashkari told CNBC in an interview Tuesday, referring to his forecast for how high rates need to go to bridle inflation. “If I had to pick a number today, I’d be where I was in December.”



Blanchflower Says Housing Market Collapse Will Force BOE Pivot

Danny Blanchflower, a former Bank of England policy maker, said “collapsing” house prices will push the UK central bank into a rapid pivot toward interest rate cuts.

Blanchflower, a professor of economics at Dartmouth College, said the BOE will have to “respond to really bad data” as previous rate increases continue to feed through to the economy.



Indian Central Bank Seen Delivering Final Rate Increase of Cycle

India’s central bank is poised to deliver its final interest-rate increase in the current tightening cycle, amid signs of cooling inflation and weakening growth.

Thirty-four of 40 economists in a Bloomberg survey expect the Reserve Bank of India’s six-member Monetary Policy Committee to move by a quarter-point Wednesday, with the rest seeing a pause after 225 basis points of increases to the main repurchase rate since last May.




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