Johnson’s Big Pitch, China on Track, Fed Patience: 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:

  • U.K. Prime Minister Boris Johnson will speak Thursday on his vision for improving living standards as the country looks beyond the pandemic.
  • Bank of England Deputy Governor Dave Ramsden said inflation in the U.K. may peak at double the targeted level, indicating monetary policy might need tightening
  • China’s robust economic recovery remained on track as retail spending bolstered 2Q growth; Bloomberg Economics sees policystaying supportive. The U.S. is extending a Trump-era pause on economic dialogue with China
  • Federal Reserve Chair Jerome Powell said any tapering of the central bank’s asset purchases is still a ‘ways off,’ while he and Treasury Secretary Janet Yellen are set to discuss risks of a hot housing market. The Bank of Canada on Wednesday boosted its inflation forecast and dialed back its bond-buying
  • The Bank of Korea left rates on hold Thursday but signaled it’s on track for a rate hike soon; Bloomberg Economics sees the virus surge and vaccine rate as key to rate-hike timing. The Bank of Japan is set to stand pat in Friday’s decision while focusing on green lending efforts
  • The Australian jobless rate hit a 10-year low in June, before a weeks-long Sydney lockdown that’s crimping economic activity
  • Booming demand for Taiwan’s chips has masked the pain of the economy’s services sectors

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