Overseas Headlines – October 20, 2021

United States:

Fed Seen Well Behind as Global Race to Rate Hikes Hits Overdrive

“Compared with the rest of the world’s central banks, the market’s timetable for when the Federal Reserve will start raising interest rates looks positively subdued. Most others, with the exception of the European Central Bank, are expected to move at a far speedier pace. U.S. traders are now pricing a full rate hike into the Fed’s September policy meeting next year. But by that time, New Zealand’s central bank would have hiked five times, Canada’s three times and England’s four times, according to the interest-rate swaps market.”



U.K. Inflation Remains Above Target Ahead of BOE Decision

“U.K. consumer prices accelerated well beyond the Bank of England’s target for a second month, propelled by the global disruption in supply chains that pushed up transport costs.Consumer prices rose 3.1% in September after a 3.2% gain the month before, the Office for National Statistics said Wednesday. The Bank of England expects prices to climb above 4% by the end of the year, more than double the mandate.”



China’s Debt-to-GDP Ratio Falls for Fourth Straight Quarter

“China’s total debt as a percentage of gross domestic product fell for a fourth consecutive quarter, as the government tries to strike a balance between ensuring stable economic growth and preventing financial risks. The country’s overall leverage ratio, which measures the percentage of debt in households, non-financial enterprises and governments to total GDP, declined to 263.2% in the third quarter, according to data compiled by Bloomberg.”




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