BOE Decision, Europe Booms, Fed Rate-Hike Timing: 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 has a big task on Thursday, balancing the need to keep the economy recovering while limiting inflation and speculation about rising interest rates
  • Europe’s private-sector economy is booming, accompanied by mounting inflation pressures as virus restrictions loosen. Italian premier Mario Draghi insisted euro-area fiscal rules can’t return to pre-pandemic status
  • The European Union has a bold plan for reducing carbon emissions from its factories. It has what might be an even bolder one for preventing the rest of the world from wiping out those cuts and destroying European jobs at the same time
  • On some of the wealthiest streets in London’s West End, the amount of empty stores has almost doubled since the start of the pandemic. Things are about to get even worse
  • The U.S. economy will likely meet the threshold for tapering its asset purchases sooner than people think, said Dallas Fed President Robert Kaplan, who has penciled in an interest-rate increase next year. His Atlanta counterpart President Raphael Bostic said the Fed could decide to slow such purchases in the next few months and that he favored lifting rates in 2022
  • Janet Yellen said Treasury may exhaust emergency measures to avoid breaching the U.S. debt limit as soon as August unless Congress acts to avert a potential “catastrophic” default
  • China’s recovery is entering a more advanced, stable stage -- but one that will require deft policy management to navigate emerging risks, writes Bloomberg Economics’ Chang Shu. There’s also a new inflation dashboard on China from Bloomberg Economics
  • Poland should shrug off inflationary fears and keep its key interest rate near zero until its economy fully bounces back, central banker Jerzy Zyzynski said

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