Overseas Headlines – May 11, 2023

May 11, 2023

United States:

Yellen Says Debt Default Would Hurt US International Leadership

Treasury Secretary Janet Yellen said failure to avoid a looming federal government default would undermine Washington’s ability to provide international leadership and defend US national security.

Yellen has long warned a default could cause an “economic and financial catastrophe.” She added the new wrinkles Thursday while in Japan to attend a meeting of Group of Seven finance officials.




BOE Raises Key Rate to 4.5%, Saying Further Hikes May Be Needed

The Bank of England raised its benchmark lending rate to the highest level since 2008, with Governor Andrew Bailey saying further increases may be needed to “stay the course” in the fight to slow inflation.

The UK central bank lifted its key rate a quarter point as expected to 4.5%, with two of the nine-member Monetary Policy Committee voting for no change. The majority of the panel said “repeated surprises” pointing to the resilience of the economy have added to price pressures and required action.




China’s Weak Inflation, Borrowing Show Economic Recovery Waning

China’s consumer prices barely grew in April, while borrowing slumped, providing further evidence the economy’s recovery is waning and fueling expectations of more central bank stimulus.

Consumer inflation weakened to a two-year low of 0.1% in April, the National Bureau of Statistics said Thursday, as food and energy costs eased. The figures were partly affected by the base of comparison from last year. Producer prices fell 3.6%, largely due to lower commodity costs.




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