March 12, 2024
United States:
US Core Inflation Tops Forecasts Again, Reinforcing Fed Caution
Underlying US inflation topped forecasts for a second month in February as prices jumped for used cars, air travel and clothes, reinforcing the Federal Reserve’s cautious approach to cutting interest rates.
The so-called core consumer price index, which excludes food and energy costs, increased 0.4% from January, according to government data out Tuesday. From a year ago, it advanced 3.8%.
Europe:
ECB Is Leaning Toward Keeping Banks’ Minimum Reserve Level at 1%
The European Central Bank is leaning against any immediate change in the amount of money lenders need to park with it interest-free, removing for now the threat of a hit to bank profitability.
Ahead of a crucial meeting on Wednesday on a revamp of the ECB’s framework for implementing monetary policy, a push by some hawkish officials to increase the so-called Minimum Reserve Requirements, or MRR, from the current 1% has struggled to gain momentum, according to people with knowledge of the matter.
Asia:
BOJ Considering March Hike With Outcome Too Close to Call, Sources Say
Bank of Japan officials are edging closer to raising interest rates and will decide whether to move this month at next week’s policy meeting, with the outcome currently too close to call, according to people familiar with the matter.
A final decision will be made after officials see the initial tally from spring wage talks due Friday, according to the people. A strong result could create the final push for a rate increase in March even as some retain the cautious view that the bank should wait until April to see more data, the people said.
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