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BOE Decision Day, Fed Hike, Inflation All Over: Eco Day

BOE Decision Day, Fed Hike, Inflation All Over: Eco Day

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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day. 

  • The Bank of England is expected to mark its birthday by raising rates as it confronts slower growth and faster inflation
    • Central banks in Poland and the Czech Republic are also set to hike, while Norway is predicted to cement its plan for another interest-rate increase in June
  • A global energy price rally and domestic credit growth are fueling ever faster inflation in Turkey, already the quickest among the G-20
  • The Federal Reserve delivered the biggest rate rise since 2000 and signaled it would keep hiking at that pace
    • Fed Chair Jerome Powell assured Americans that policymakers will do what it takes to curb surging inflation
    • Bloomberg Economics expects the Fed to hike rates by 50 basis points at its next two meetings
    • Janet Yellen expects solid growth in the coming year, with a possible “soft landing”
  • Elsewhere, inflation continues to make its mark as stubbornly high price growth in the developed world may make fears of a wage-price spiral a reality, Europe’s Russian oil embargo adds more inflation trouble, and inflation gains are keeping Southeast Asia’s central bankers on edge
  • The German government is split on taxing energy firms’ windfall profits
  • China may soon reveal more policies intended to rescue its economy
  • The global hunger crisis is “exploding” after a 25% spike before the war in Ukraine

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