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Turkey’s Central Bank Hold Rates as Iran War Threatens Inflation Pickup
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- Turkey’s central bank held its benchmark one-week repo rate at 37.0% but warned of future hikes if inflation rises due to energy prices.
- The central bank previously cut its key rate for a fifth consecutive meeting in January, reducing it to 37.0% from 38.0%.
- The central bank suspended weekly repo auctions and launched a new foreign exchange facility to stem the fall in the lira.
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The War in Iran May Upend Brazil Central Bank’s Plans to Cut Rates
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- The Middle East conflict may force Brazil’s central bank to reconsider a planned interest rate cut due to potential oil price increases.
- The Ibovespa stock index was up 17% this year as of March 12, but analysts now consider smaller rate cuts.
- Monetary easing could also be hampered by Brazil’s government spending and a widening fiscal deficit ahead of October elections.
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U.S. Trade Deficit Shrinks 25%, Driven by Gold Exports
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- The U.S. trade deficit declined to $54.5 billion in January, a 25% decrease from December, the Commerce Department reported.
- Exports expanded by 5.5% due to gold sales, while imports declined by 0.7% from fewer pharmaceutical purchases.
- The Supreme Court overruled President Trump’s use of a federal law to impose broad duties last month.
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U.S. Jobless Claims Fell Last Week
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- U.S. initial jobless claims fell to 213,000 in the week through March 7, signaling modest layoffs from employers.
- Continuing claims for unemployment benefits decreased to 1.85 million in the week through Feb. 28.
- The subdued jobless claims suggest employers are retaining staff despite a weaker jobs report last month.
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U.K. Economy Unexpectedly Stalled in January
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- The U.K. economy showed no growth in January, missing economists’ expectations for a 0.2% rise.
- A rise in energy prices and uncertainty from the U.S. and Israel’s attack on Iran are likely further hindering growth.
- The government’s budget watchdog lowered its 2026 growth forecast to 1.1% from 1.4%, a blow to the Labour government.
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Canada Goods-Trade Deficit Widens to $2.68 Billion
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- Canada’s merchandise-trade deficit widened to C$3.65 billion in January, its widest level in five months, driven by declining exports.
- Total Canadian goods exports fell 4.7% to C$62.48 billion, with motor vehicles, metals, and aircraft shipments seeing significant declines.
- The country’s longstanding trade surplus with the U.S. narrowed to C$5.4 billion, while its deficit with non-U.S. countries widened.
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Eurozone Industrial Production Retreats at Start of 2026
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- Eurozone industrial output unexpectedly fell 1.5% in January 2026, contrasting with economists’ expectation of a 0.5% increase.
- A 9.8% output fall in Ireland exaggerated the January decline, though weakness was broad-based across capital and intermediate goods.
- Challenges for the eurozone industrial sector are expected to increase in coming months due to higher energy prices from the Middle East war.
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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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