June 22, 2023
United States:
Distressed US Commercial Property Assets Swell to $64 Billion
Distress is spreading in the US commercial real estate industry, with the amount of troubled assets climbing to nearly $64 billion in the first quarter of this year.
The amount of distressed assets rose 10% in the first three months of the year, according to a new report from MSCI Real Assets. Risks loom on the horizon too, with nearly $155 billion of commercial property assets that are potentially troubled, according to the report.
Europe:
BOE Steps Up Inflation Fight With Surprise Rate Hike to 5%
The Bank of England unexpectedly raised its benchmark interest rate by a half percentage point, stepping up its fight against the worst bout of inflation since the 1980s and warning it may have to hike again.
The nine-member Monetary Policy Committee voted 7-2 for an increase to 5%, the highest level in 15 years and the biggest move since February. Markets had priced in only a 40% chance of a half-point hike, with most economists anticipating a quarter point.
Asia:
India Rate-Setters to Keep Vigil on Price Outlook, Minutes Show
India’s rate-setters took comfort in moderating price gains, but will keep a close vigil on upside risks to inflation, including the spread of the monsoons and geopolitical tensions, minutes of the monetary policy meetings released Thursday showed.
The Reserve Bank of India’s six-member monetary policy panel unanimously voted to keep the benchmark repurchase rate unchanged for the second straight meeting with Governor Shaktikanta Das reiterating it was a pause and not a pivot toward rate cuts. The monetary authority retained the policy stance on “withdrawal of accommodation” and called for a watch on inflation’s trajectory.
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