March 14, 2024
United States:
US Producer Prices Jump, Adding to Signs of Persisting Inflation
Prices paid to US producers rose in February by the most in six months, driven by higher fuel and food costs that add to evidence inflation remains elevated.
The producer price index for final demand increased 0.6% from January, Labor Department data showed Thursday. The gauge rose 1.6% from a year earlier, the largest annual advance since September.
Europe:
ECB Must Cut Rate Twice Before Summer Break, Stournaras Says
The European Central Bank must lower borrowing costs twice before its August summer break and two more times before the end of the year, without being swayed by the US Federal Reserve, according to Governing Council member Yannis Stournaras.
“We need to start cutting rates soon so that our monetary policy does not become too restrictive,” Stournaras, who also heads Greece’s central bank, said in an interview in London. “It is appropriate to do two rate cuts before the summer break, and four moves throughout the year seem reasonable. Insofar, I concur with the markets’ expectations.”
Asia:
BOJ Rate Hike Risk Revs Up Fiscal Reform Need, LDP Official Says
With the Bank of Japan likely to hike interest rates as soon as next week, the government needs to gets its fiscal house in order to mitigate financial risks, a senior lawmaker in the ruling Liberal Democratic Party said.
“Financial risks are increasing as the BOJ’s interest rate hike is in sight,” Yoshihisa Furukawa, leader of a panel on financial reform, told Bloomberg in an interview Tuesday. “We must continue our efforts to restore fiscal soundness on both the spending and revenue fronts,” he said.
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