Share to Twitter Share to Linkedin Topline The European Central Bank on Thursday authorized its first interest rate hike in 11 years in a bid to help cool rising inflation, becoming the latest central bank to more aggressively unwind policy that fueled economic growth during the pandemic even as global recession fears continue to rise. Key Facts In a statement on Thursday, the ECB said it would raise rates by 50 basis points as a “key step to make sure inflation returns to its 2% target over the medium term”—coming in at the higher end of expectations calling for an increase of at least 25 basis points. Officials also signaled additional hikes to come, saying “further normalization” of interest rates will be appropriate, though they suggested the larger hike on Thursday will allow them to move more slowly with future increases, adding: “The frontloading today . . . allows the Governing Council to make a transition to a meeting-by-meeting approach … [Read more...] about European Central Bank Raises Interest Rates For The First Time In 11 Years As Global Inflation Surges
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This article first appeared in Forum, The Edge Malaysia Weekly, on August 8, 2022 - August 14, 2022. - A + A As Singapore approaches its 57th birthday, it faces a more troubled operating environment. This is the product of a dizzying series of events in the past six months which saw geopolitical conflicts, a decisive monetary tightening, high energy prices and growing risks in China. While Singapore’s economy starts off from a strong position in 2022, the going will get tougher as we move into 2023 and beyond. Nevertheless, the republic should adopt a positive approach, taking the more challenging environment as an opportunity to undertake reforms to strengthen its ability to accommodate the changed world. Singapore must deal with a world that has been decisively transformed First, worsening tensions among the world’s big powers have created a more dangerous world for Singapore. Russia’s “special military operation” in Ukraine has put it in conflict … [Read more...] about My Say: Singapore at 57: Looking ahead with confidence
Crude oil prices plummeted after Saudi Arabia slashed oil prices by nearly 10% over the weekend in retaliation against Russia for its refusal to join the Organization of the Petroleum Exporting Companies (OPEC) in a large production cut. The move could spark a price war between the two oil producing giants that were previously working together in a three-year alliance to support prices. Analysts aren't sure if the two parties could still reach a compromise or if the production increases will be long term. If the rout continues, oil prices could reach their lowest levels in five years and affect everyone from Venezuela and Iran to debt-laden U.S. shale producers. The only good news is that consumers could benefit from the lower prices. Of course, the move comes at the same time that the energy markets have already been struggling with the COVID-19 virus that is expected to significantly reduce energy demand from travel and other areas of the economy. The United States Oil ETF ( … [Read more...] about US Oil: What Levels Should You Be Watching?