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ECB’s Next Move Should Be Guided by the Data, Not the Date, Villeroy Says
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- Bank of France Gov. Francois Villeroy de Galhau said the ECB cannot commit to a June rate hike, with decisions driven by data.
- Villeroy stated that investor interpretation of a likely June rate rise was a misunderstanding of policy decisions.
- Villeroy warned that “populist critique” of central bank independence could weaken credibility and harm inflation control.
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Sweden’s Riksbank and Norway’s Norges Bank Take Diverging Paths
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- Norges Bank raised its key policy rate to 4.25% from 4% to curb elevated inflation amid Middle East conflict uncertainty.
- Riksbank held its key policy rate at 1.75%, maintaining a wait-and-see approach despite increased inflation risk from the conflict.
- Norway’s annual core inflation remains elevated at 3.0%, staying above the Norges Bank's 2% target for over four years.
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Malaysia Central Bank Holds Steady as It Gauges Mideast War Impact
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- Bank Negara Malaysia kept its overnight policy rate at 2.75% on Thursday, holding steady since July last year.
- The central bank cited contained inflation and economic resilience amid Middle East conflict disruptions for its decision.
- Malaysia’s government spends 5 billion ringgit monthly to subsidize RON95 petrol, helping contain domestic inflation.
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German Factory Orders Jumped in First Month of Iran Conflict
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- German manufacturing orders climbed 5.0% in March, exceeding expectations and marking a second consecutive monthly rise.
- The March increase is seen as businesses building stocks due to fears of supply disruptions and higher prices after the war in Iran.
- Despite March’s strength, the war in Iran and surging energy prices threaten to dim Germany’s industrial recovery, according to economists.
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Eurozone Retail Sales Soften as Shoppers Feel Energy Pinch
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- Eurozone retail sales unexpectedly declined 0.1% in March, driven by higher fuel prices due to the war in Iran.
- Consumer confidence in the eurozone plunged to its lowest level since December 2022 in April, signaling future demand weakness.
- Annual inflation in the eurozone accelerated to 3% in April, from 1.9% in February, impacting retailers like H&M and Zalando.
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Job Market Starts to Show Glimmers of Good News
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- The private sector added 109,000 jobs in April, the best in 15 months, and March hiring picked up, boosting job market recovery hopes.
- Despite positive emerging signs, hiring has been concentrated in healthcare, job openings have trended lower, and the economy shed jobs in five of the past 12 months.
- Federal Reserve Chair Jerome Powell has stated that improving job data allows the central bank to focus on leaning against price increases.
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About Us
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WSJ Pro Central Banking brings you news and analysis from a global team of reporters and editors at The Wall Street Journal and Dow Jones Newswires. Send your tips, suggestions and feedback to service@dowjones.com. An artificial-intelligence tool created these summaries, which are based on the text of the article and checked by an editor. Read more about how we use artificial intelligence in our journalism.
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