March 6, 2023
United States:
US Banks Are Finally Being Forced to Raise Rates on Deposits
US banks are being forced to do something they haven’t done for 15 years: fight for deposits.
After years of earning next to nothing, depositors are discovering a trove of higher-yielding options like Treasury bills and money market funds as the Federal Reserve ratchets up benchmark interest rates. The shift has been so pronounced that commercial bank deposits fell last year for the first time since 1948 as net withdrawals hit $278 billion, according to Federal Deposit Insurance Corp. data.
Europe:
Centeno Says ECB Should Heed Lower Inflation Forecasts in March
The European Central Bank must keep in mind that inflation has fallen short of its own forecasts when setting the pace of interest rate increases, according to Governing Council member Mario Centeno.
“The figure for February, just released, was several basis points below the December forecast,” the Portuguese central bank chief told La Stampa in an interview published Monday. Policymakers will need to look “very carefully” at updated inflation forecasts in March, which can be expected to be lower over the projection horizon, he added.
Asia:
Xi Vows to Boost High-End Manufacturing in Face of US Pressure
China will take forceful measures to support the development of high-end manufacturing, President Xi Jinping said in his first comments at the closely watched National People’s Congress.
The manufacturing industry must always be a pillar of strength for China, Xi told delegates from Jiangsu province. The country must ensure its self-reliance in technology, foster small and medium-sized enterprises and build global centers for innovation, state-run CCTV cited Xi as saying on Sunday. The commentary, also conveyed in a Xinhua report Monday, comes against a backdrop of accelerating shifts of production capacity from China to neighboring nations like India and Vietnam.
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