U.K. Inflation Pushes Up Treasury’s Debt Payments to a Record
“Inflation took a toll on the U.K. public finances last month, driving interest payments on government debt to unprecedented levels. The Treasury paid 8.7 billion pounds ($11.8 billion) in interest in June, the most for any month since records began in 1997, the Office for National Statistics said on Wednesday. The 6 billion pound increase from a year ago was due to higher retail-price inflation pushing up the cost of servicing index-linked gilts.”
ECB Set to Rewrite Stimulus Pledge After Raising Inflation Goal
“The European Central Bank starts a potentially heated two-day meeting on Wednesday, with officials needing to decide how their newly unveiled monetary strategy affects near-term policy. After raising their inflation goal to 2% earlier this month and pledging to be “forceful or persistent” to hit it, the challenge for policy makers is to make clear what such an approach means for interest rates and bond-buying. Disagreements immediately surfaced when drafts of potential wording were circulated, Bloomberg reported last week.”
Asia Exports Show Strength as Virus Variants Cloud Outlook
“Japan and South Korea posted solid export gains again, adding to global trade momentum just as virus variants cloud the outlook for economic growth in the second half of the year. Exports from Japan jumped 49% in June from the dismal level of a year earlier, while the value of Korea’s overseas shipments in the first three weeks of July gained by a third.”
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