July 20, 2023
United States:
Fed Seen Hiking Final Time to a 22-Year Peak in Economist Survey
Most economists expect the Federal Reserve to lift interest rates one more time next week as it ends a 16-month hiking cycle that has been the most aggressive fight against US inflation in 40 years.
The Federal Open Market Committee will raise rates a quarter point at its July 25-26 meeting to a range of 5.25% to 5.5%, the highest since 2001, according to economists surveyed by Bloomberg. With price pressures diminishing last month, almost all economists expect no change to rates at the September meeting and just one-fifth of the group predicts another hike by the November meeting.
Europe:
Euro Area Stagnated in 1st Quarter, Dodging Winter Recession
The euro-area economy avoided a winter recession after all, with revised data showing it stagnated at the start of this year instead of shrinking as previously thought.
Output in the 20-nation currency bloc was flat in the first quarter, according to updated figures on Eurostat’s website on Thursday. That’s up from a prior reading of -0.1%, which — combined with a decline of the same magnitude at the end of 2022 — had suggested the first six-month contraction since the Covid-19 pandemic.
Asia:
China Mulls Mortgage Easing to Spur Homebuying in Big Cities
Chinese authorities are considering easing home buying restrictions in the nation’s biggest cities, potentially removing a hurdle that has curbed demand in Beijing and Shanghai for years, according to people familiar with the matter.
Regulators are weighing scrapping rules that disqualify people who’ve ever had a mortgage – even if fully repaid – from being considered a first-time homebuyer in major cities, said the people, asking not to be identified discussing a private matter. Currently homebuyers with a mortgage record who don’t own a property are still subject to the higher down-payment and more restrictive borrowing limits applied to those buying a second home.
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