Charting the Global Economy: Central Banks Hold the Line

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Or sign-in if you have an account.we{[(zag8q4dof[7hvptp2gg_media_dl_1.png Ministry of Trade and Industry(Bloomberg) — Monetary policymakers from the US and the UK to Japan left interest rates unchanged this week as they assessed renewed inflation risks from higher energy costs and war in the Middle East.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Federal Reserve kept borrowing costs unchanged, but three officials voted for higher rates. The Bank of Japan and Bank of England also held rates steady, but like the US, several BOE policymakers also pushed for tighter policy. Elsewhere, higher costs complicated the outlook. Inflation accelerated in Germany and in France. Japan lowered its economic growth forecast and Singapore expanded support for households and businesses facing higher costs from the prolonged Middle East conflict.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againHere are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:In addition to decisions by central bankers in the US, UK and Japan, Pakistan, Kyrgyzstan, Chile, Georgia, Uzbekistan, and Mozambique kept rates unchanged. Ukraine raised interest rates, while Singapore tightened monetary policy through the exchange rate. US economic growth moderated in the second quarter, though a pickup in consumer spending and solid business investment signaled underlying strength. Consumer spending, which comprises about two-thirds of economic activity, rose at a stronger-than-expected 3.2% rate. Business investment continued to boom amid a rush to invest in artificial intelligence.Federal Reserve Chairman Kevin Warsh insisted policymakers’ decision to leave interest rates unchanged wasn’t a sign of inertia at the central bank, which he reiterated is committed to tackling inflation. The Federal Open Market Committee voted 9-3 to hold the benchmark federal funds rate in a range of 3.5% to 3.75%.US consumer confidence fell in July as Americans’ views about current business conditions and the labor market deteriorated. An indicator of present conditions dropped to the lowest since 2021, while the Conference Board’s measure of expectations for the next six months was unchanged. German inflation accelerated to the highest level in three months after temporary fuel-price relief expired and renewed fighting in the Middle East bolstered oil. Consumer prices rose an annual 2.8% in July, the statistics office said.The Bank of England kept interest rates steady at 3.75% on Thursday, with Governor Andrew Bailey insisting his committee is not getting closer to a hike despite three members voting for tighter policy.French inflation unexpectedly quickened this month, supporting the case for another European Central Bank interest-rate increase. Consumer-price growth in the euro area’s second-largest economy jumped to 2.4% in July, the statistics agency Insee said. China’s top officials struck a more supportive tone on the economy but stopped short of announcing fresh stimulus, holding back from aggressive measures despite an abrupt slowdown in growth. The measured approach taken by China’s leadership disappointed investors who anticipated a more forceful response. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Japan lowered its economic growth forecast for the current fiscal year, reflecting expectations that higher oil prices driven by tensions in the Middle East will weigh on domestic demand and add urgency to Prime Minister Sanae Takaichi’s efforts to address rising costs of living.Singapore is nearly doubling its support package to help households and businesses defray higher costs caused by a protracted Middle East conflict. The government will offer another S$900 million ($700 million) in assistance especially for lower-income Singaporean households as well as small and medium enterprises. That adds to an earlier support package unveiled in April, taking its total to nearly S$2 billion.Mexico’s economy rebounded in the second quarter after exports rose to a record despite prolonged trade tensions with the US. Exports have provided some relief to the Mexican economy during a 19-month decline in gross fixed investment, which only came to a halt in April thanks to government spending. Chile’s business confidence fell for the fifth straight month to the lowest level since December 2024, marking another sign of economic unease, according to the Institute for Quality Business Management. Mining confidence drove much of July’s deterioration, declining to the lowest level since 2024 as winter storms disrupted some operations in central parts of the country. Brazil’s economy created more jobs than expected in June, bouncing back from a weak figure the prior month. Brazil’s latest job creation and consumer price figures are painting a mixed picture for central bankers. While inflation slowed much more than forecast in early July, a solid labor market is still supporting demand and complicating policymakers’ efforts to haul cost-of-living rises to their 3% target.—With assistance from Zoe Schneeweiss, Augusta Saraiva, Jeffrey Sparshott, Mark Niquette, Alex Vasquez, Gonzalo Soto, Giovanna Serafim, Beatriz Reis, Gabriel Diniz Tavares, Erica Yokoyama, Claire Jiao, Srinidhi Ragavendran, Jonnelle Marte, Tom Rees and James Regan.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.