May 22, 2024
United States:
Fed’s Collins, Mester Emphasize Need for More Data to Cut Rates
Two Federal Reserve officials reinforced a higher-for-longer message on interest rates, emphasizing a need for patience as the central bank waits for more evidence inflation is moving lower.
Speaking on a panel moderated by Atlanta Fed President Raphael Bostic, Cleveland Fed chief Loretta Mester said Tuesday that she wants to see “a few more months of inflation data that looks like it’s coming down” before cutting interest rates.
Europe:
German Wages Jump at Start of Year in Risk to Inflation Path
German wages rose sharply at the start of 2024 — dealing a blow to the European Central Bank as it decides whether inflation is slowing enough to reduce interest rates.
Negotiated pay increased 6.2% in the first quarter, the Bundesbank said Wednesday in its monthly report. That exceeded estimates by analysts at Bloomberg Economics, Citi and Morgan Stanley, though the figure includes one-off payments to compensate workers for the surging cost of living.
Asia:
Indonesia Holds Key Rate as It Gauges Data for Next Move
Indonesia’s next monetary policy move will remain data-driven, according to Governor Perry Warjiyo, even as last month’s rate hike showed early gains in luring foreign funds and bolstering the rupiah.
Bank Indonesia, whose key mandate includes currency stability, left the BI-Rate steady at 6.25% on Wednesday — a decision expected by all 38 economists surveyed by Bloomberg.
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