BOE Decides, Dovish Powell, Brazil’s Rate-Hike Binge: Eco Day

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

  • The Bank of England probably will emphasize its high bar for tightening monetary policy in its decision today, even as the economic outlook brightens
  • That would match the message from the Federal Reserve’s Jerome Powell, who said Wednesday there won’t be an interest-rate hike until the U.S. economy has fully healed -- a break from the tradition of pre-emptively striking against inflation. The Fed kept its zero-rate outlook as it reiterated that the inflation bump is transitory
  • Brazil’s central bank delivered the biggest interest-rate increase in more than a decade and unveiled a bold rate-hike plan
  • Bloomberg Economics takes a look at what to expect out of the U.S.-China summit in Alaska, though the U.S. has cautioned not to count on a breakthrough. The U.S. Senate confirmed Katherine Tai as U.S. trade representative by a 98-0 vote, a sign of support for the administration’s plans to push China to live up to trade commitments
  • Australia’s unemployment rate tumbled by a half-point to 5.8% in February amid fiscal and monetary support and rising sentiment. New Zealand, which has been seen as a success story in battling Covid, faces a double-dip recession on its closed-border policies
  • Americans have amassed around $1.7 trillion in savings during Covid that could be unleashed in a surge of “revenge spending” in the months ahead. Meanwhile, McKinsey & Co. says the rebound in consumer demand from the Covid-19 crisis looks set to be fast but uneven, with those who were able to save money over the past year in a strong position to spend
  • Turkey’s central bank is expected to resume interest-rate increases today after rising oil prices and recent lira volatility sent inflationary risks climbing

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