Archives of “May 2021” month

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Mexico central bank keeps overnight rate unchanged at 4%

  
  Analysis

Mexico central bank decision unanimous in keeping rates unchanged

The Mexico’s central bank keeps the benchmark interest rate unchanged at 4%:

  • Rick decision was unanimous
  • balance of risks to inflation as an upward bias
  • highly uncertain environment, risk for inflation economic activity and financial markets pose major challenges for monetary policy
  • recent shocks that have affected inflation, necessary for adjustment and relative prices to take place in an orderly manner so that an impact on price formation and inflation expectations is avoided
  • headline and core inflation are still expected to converge to 3% target starting in second quarter of 2022

BOJ governor Kuroda attributes sharp rise in US CPI to base effects

  
  Analysis

BOJ governor, Haruhiko Kuroda, speaks in parliament

  • Sharp rise in US inflation partly due to base effects of last year’s oil price drop
  • Closely watching US economic developments, inflation and its impact on Japan in guiding monetary policy
Base effects or not, the report yesterday was sizzling and is one point in the corner of inflation. The question now for the Fed is how many more readings like that can they keep passing on as “transitory”? That is something not even Kuroda can answer for now.

UK scientists alarmed over COVID-19 Indian mutant strain – possible delay to lockdown exit

  
  Analysis

Via the UK press (Telegraph), an emergency meeting of the UK Scientific Advisory Group for Emergencies (Sage) committee has been called for 13 May 2021.

  • to discuss the rapid spread of the Indian variant of the coronavirus
  • scientists are concerned the growth of the variant in infection numbers force the delay of the final step in the roadmap out of lockdown on June 21
Here is the link for more. The piece is via another website so is not gated, as the Tele usually is.
Given the resounding success of the UK vaccine rollout I’d suggest (in my admittedly non-PhD in virus stuff opinion) that the fears will prove to be unfounded. But, there you go.
Meanwhile, this earlier gave GBP a little boost:
  • BoE’s Haldane says UK inflation is likely to be above 2% by the end of 2021
Via the UK press (Telegraph), an emergency meeting of the UK Scientific Advisory Group for Emergencies (Sage) committee has been called for 13 May 2021. 
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