Overseas Headlines – June 24, 2021

United States:

U.S. Initial Jobless Claims Fell Slightly Last Week to 411,000

“Applications for U.S. state unemployment insurance fell slightly last week, resuming a downward trend and reflecting an improving economy. Initial claims in regular state programs decreased by 7,000 to 411,000 in the week ended June 19, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 380,000 new applications. The prior week’s claims were revised up to 418,000.”



BOE Warns Against Tightening Too Soon as Inflation Surges

“The Bank of England pushed back against speculation that a surge in U.K. inflation means it’s preparing to boost interest rates, saying the economy still needs support to recover from the pandemic. The central bank warned against “premature tightening,” toughening its language on the need to maintain stimulus. The remarks contrasted with a sharp increase in the bank’s outlook for inflation, which officials now see peaking at 3%, a half point higher than their forecast just six weeks ago.”



Korea Set to Lead Asia’s Rate-Hike Cycle as Lee Flags 2021 Move

“The Bank of Korea once again looks set to spearhead Asia’s first interest-rate hikes, after Governor Lee Ju-yeol said policy normalization is in the pipeline this year, triggering a recalibration of market bets. As pandemic-era stimulus runs the risk of inflating asset bubbles and spurring more volatility in capital flows across the region, several central banks have stressed the need to rein in ultra-loose policy. China has started to curb credit growth, while New Zealand sees a rate hike next year.”



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