September 21, 2022
Fed to Hike and Hammer Home Hawkish Message: Decision-Day Guide
The Federal Reserve is poised to raise interest rates to the highest level since 2008 and forecast further increases as Chair Jerome Powell leads efforts to curb harmful inflation.
UK Company Tax Cuts Will Boost Growth, Thatcher Think Tank Says
The UK economy is set for a significant boost if Chancellor of the Exchequer Kwasi Kwarteng scraps a planned increase in corporation tax, but reforming capital allowances could achieve even more, according to the research group founded by Margaret Thatcher.
Stopping the hike from going ahead in April — among the tax cuts promised by Prime Minister Liz Truss — could lift GDP by 1.2% in the long term, investment by 2% and wages by 1.1.%, the Center for Policy Studies said in an analysis Wednesday.
BOJ Announces Unscheduled Bond Buying as Yields Stay at Ceiling
The Bank of Japan announced an unscheduled bond-purchase operation as it seeks to cap upward pressure on yields before a policy decision later this week.
The BOJ said it would buy 150 billion yen ($1.04 billion) of debt due in five to 10 years, and 100 billion yen of securities maturing in 10 to 25 years. That’s in addition to the central bank’s daily offer to purchase an unlimited quantity of 10-year bonds at 0.25%. The 10-year yield climbed to the 0.25% upper limit of the BOJ’s tolerated range last week for the first time in three months.
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