Could Euro Area CPIs Unsettle ECB Rate Cut Expectations?

Personal income grew 0.3% month-on-month (m/m) in July, up from June’s 0.2% gain and above market expectations (0.2%). Accounting for inflation and taxes, real personal disposable income grew 0.1% for a second consecutive month. Personal consumption expenditures growth accelerated in July, up 0.5% m/m. This was higher than the 0.3% recorded in June, but in […]

Markets At a hearing before Parliament this morning, BoJ governor Ueda had a balanced but after all clear message. The BoJ has started policy normalization and intends to further walk that path if inflation and growth continue to develop in line with the banks’ expectations. The market volatility in the wake of the July decision […]

Fed Chair Powell’s speech in the Jackson Hole symposium has cemented the expectations of a Fed funds rate cut in the upcoming September FOMC meeting. The uncertainty element is the magnitude and the pace of the upcoming Fed funds rate cut cycle. Upcoming key US growth data such as ISM manufacturing, and services PMIs (including […]