Archives of “March 18, 2022” day

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Draghi: The EU Commission should set a cap on gas prices

  
  Analysis

There is too much talk about price controls in Europe for this to not be close to actually happening. He’s talking about natural gas here, not gasoline.

Ultimately, this would be wildly expensive and drive up overall consumption but it will help to save some industry and win some elections. But doing this while calling for a windfall tax on European gas producers is a baffling set of policies. And at the same time as the ECB says there’s no real inflation.

BOJ announce no change to monetary policy, as expected

  
  Analysis

The main components of policy:

  • short-term interest rate target at -0.1%
  • 10-year bond yields target around 0%

unchanged.

  • The Bank has downgraded its overall assessment of the economy.
  • will take additional easing steps without hesitation as needed, with eye on impact of covid-19 pandemic
  • leaves intact guidance that it expects short-, long-term policy interest rate to remain at present or lower levels
  • japan’s economy likely to recover as pandemic’s impact subsides
  • core consumer  inflation  likely to clearly accelerate pace of increase for time being
  • Japan’s economy picking as a trend
  • global markets showing unstable moves in wake of Russia’s invasion in Ukraine
  • exports, output increasing as a trend, though getting affected by supply constraints
  • pick-up in consumption moderating
  • inflation expectations heightening gradually
  • trend inflationary pressure likely to heighten ahead
  • there is very high uncertainty on how Ukraine developments affect japan’s economy, prices via markets, raw material prices, overseas economies

US media report Putin has placed some of his intelligence officials under house arrest

  
  Analysis
  • Vladimir Putin has now put some of his own intelligence officials under house arrest, according to sources who spoke to The New York Times
  • The report suggests Putin may be insulated from solid information, or worried that these aides might try to overthrow him, as former Russian Foreign Minister Andrei Kozyrev told MSNBC in a recent interview.

Link here for more

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