October 27, 2022
United States:
US Economy Rebounds as Consumers, Businesses Show Resilience
The US economy rebounded following two quarterly contractions thanks in part to resilient consumers and businesses, though inflation and higher interest rates leave growth vulnerable in the coming months.
Gross domestic product rose at a 2.6% annualized rate in the July to September period after falling for the first two quarters, the Commerce Department’s preliminary estimate showed Thursday. Personal consumption, the biggest part of the economy, climbed at a 1.4% pace, better than forecast but still a slowdown from the prior quarter.
Europe:
ECB Doubles Rate to Most in Over a Decade Despite Recession Fear
The European Central Bank doubled its key interest rate to the highest level in more than a decade and signaled it’s making progress in its battle with record inflation, just as the likelihood of a recession mounts.
Officials in Frankfurt delivered a second straight three-quarter-point hike on Thursday — as economists expected — while dropping a prior reference to increases continuing for “several meetings,” saying simply they expect borrowing costs to be raised “further.”
Asia:
BOJ’s Kuroda Faces Balancing Act to Avoid Tanking Yen
Bank of Japan Governor Haruhiko Kuroda faces another key test of his decade-long term Friday as he tries to stick with rock-bottom rates without triggering the same kind of yen slide that prompted currency market intervention after last month’s meeting.
Kuroda and his fellow board members will maintain the world’s last remaining negative interest rate among major central banks at the end of a two-day meeting, according to all 49 economists surveyed by Bloomberg. The central bank will also keep its 0.25% cap on 10-year government debt and its asset purchases, they say.
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