Tiff Macklem, governor of the Bank of Canada, said that a sharp rise in interest rates is likely to push the country into a deeper recession. But the central bank's failure to tackle inflation presents greater risks to the economy of Canada.
Tiff Macklem, governor of the Bank of Canada, said that a sharp rise in interest rates is likely to push the country into a deeper recession. But the central bank's failure to tackle inflation presents greater risks to the economy of Canada.
Australia's consumer sentiment index fell to a record low in November. However, it has already risen in December. It’s driven by the fact that consumers anticipate the end of a difficult cycle of rising interest rates.
On Monday, the International Monetary Fund (IMF) released data showing that after peaking as a result of the spread of the coronavirus infection, the fall in global public and private debt in 2021 was the largest in the last 70 years.
This week will be crucial for the dollar’s dynamics till the end of the year. The last CPI report in the States will be released, and the last FOMC meeting of this year will be held.
According to the expectations of HSBC economists, the British pound sterling will decrease against the U.S. dollar, and a sharp decrease in the pair is unlikely.
According to the forecasts of MUFG Bank strategists, the level of the eurozone interest rate will reach 2.75%, which will be the peak. Thus, the growth of the euro will be limited.
Businesses in Australia posted a pessimistic outlook on their earnings for the first time in a year. This is caused by growing fears of soaring inflation and higher interest rates in the country. These factors are likely to hurt consumer spending in the short term.
This Tuesday, at 8:30 a.m. Eastern Time, updated information on the U.S. Consumer Price Index (CPI) for November is expected to be released.
Oil continues to rise on Tuesday. The increase in oil prices is due to the shutdown of a key oil pipeline supplying the United States and high demand from China.
Americans are expecting declines in future levels of inflation in the coming months, a survey from the Federal Reserve Bank of New York showed. In November, consumers expect the inflation rate a year from now and three years from now to be 5.2% and 3%, respectively.