Bank of England’s Monetary Policy Holds Steady Amid Economic Uncertainty
The Bank of England has opted to keep the Bank Rate at 5.25% until at least July, marking a pause in its tightening cycle, according to a Reuters poll of economists. This decision comes after last week’s surprising move by the BoE to hold rates, citing a slowing economy and lower-than-expected inflation. The central bank has gradually increased rates by 515 basis points in 14 consecutive moves since December 2021 to combat soaring inflation. While the recent decision may offer some respite to borrowers, there’s still a divided opinion among experts on whether further rate hikes are necessary later this year.
EXCLUSIVE New Saudi airline plan takes aim at Emirates, Qatar Airways
Saudi Arabia plans to target international transit passenger traffic with its new national airline, going head-to-head with Emirates and Qatar Airways and revving up regional competition.
Syria says Israeli raids target Mediterranean port region of Latakia
Syrian air defences downed several Israeli missiles during pre-dawn raids on the Mediterranean port city of Latakia, the Syrian army said on Wednesday, a rare attack on the ancestral home region of the Syrian leader and close to a Russian air base. A Syrian army statement said aerial strikes soon after 2am hit several areas […]
In energy-reliant Canada, banks and investors face dilemma in meeting emissions target
Canadian banks’ commitments to “net-zero financed emissions” by 2050 have drawn doubts from many investors, given the lack of a defined goal, details and their continued support for oil and gas companies, even if partially aimed at helping them transition to alternatives. But their growing funding for green projects also presents a dilemma for shareholders […]
Climate finance targets top agenda for this week’s G7 meetings
Targets for climate finance and girls’ education will top the agenda at a meeting this week of foreign ministers from the Group of Seven advanced economies, this year’s chair Britain said on Sunday. The London summit will be the first attended in person by G7 foreign ministers for two years. Britain has also invited representatives […]
Pitfalls of average inflation targeting when agents have imperfect knowledge
Recent challenges have generated interest in new monetary policy frameworks, including average inflation targeting. The Federal Reserve adopted this policy in 2020, but they have not communicated many details about the policy itself. This column argues that an opaque average inflation targeting policy can de-anchor inflation expectations from the target equilibrium – even if expectations are initially well-anchored. Policymakers should be cautious when implementing average inflation targeting.
