Powell Retort, RBNZ Housing Policy, Central Banks Fret: Eco Day

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

  • Fed Chair Jerome Powell emphasized his view that the economy has a long way to go in the recovery and signs of prices rising won’t necessarily lead to persistently high inflation
  • New Zealand’s government will require the central bank to take account of the housing market when it sets monetary policy, a change the bank opposed
  • The unprecedented $9 trillion rescue mission by central banks to haul the world economy from its Covid recession is being tested
  • The Biden administration acknowledges it has a “significant” role to play in resolving the diplomatic standoff between Canada and China, according to Prime Minister Justin Trudeau
  • He also said Canada and the U.S. are working on environment plans that could include singling out countries with weaker climate laws
  • A string of sporadic Covid-19 outbreaks in Australia and restrictions to curb the spread have only had a modest impact on activity, writes James McIntyre
  • India’s economy looks ready to leave a sharp downturn behind as business and consumer activity showed more signs of gathering momentum in January
  • Reforming the WTO’s paralyzed dispute-resolution body will be a key priority for the institution, but the process won’t be easy, incoming Director-General Ngozi Okonjo-Iweala said
  • Bank of England officials brushed aside suggestions that the economy is about to suffer from higher inflation anytime soon
  • President Joe Biden expects his first call to Saudi Arabia’s King Salman “to happen soon,” as the U.S. works to re-evaluate ties

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