BOE Rate Vote, Powell’s Rate Patience, Lagarde Pushback: 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 will decide Thursday whether to deliver its first interest rate hike since the pandemic as a divided Monetary Policy Committee grapples with spiking inflation and slowing growth
• Federal Reserve Chair Jerome Powell said officials can be patient on raising interest rates -- after announcing a start to reducing their bond purchases -- but won’t flinch from action if warranted by inflation
• Here are key takeaways from the November FOMC meeting by Bloomberg Economics
• Czech central bankers are likely to extend the most aggressive campaign of interest-rate increases in the European Union as they escalate their war on inflation despite a looming economic slowdown
  • Norway also holds a rate decision
• Poland’s central bank governor pledged to do “whatever it takes” to reign in inflation after policy makers surprised markets with a larger-than-expected interest-rate increase
• European Central Bank President Christine Lagarde renewed her pushback against market bets for an interest-rate increase in 2022 after an attempt last week left investors unimpressed
• Inflation extended its surge last month, raising pressure on the Bank of Russia to make a bigger increase in interest rates in December
• Bank of Japan Governor Haruhiko Kuroda said he confirmed with Prime Minister Fumio Kishida that the central bank will keep aiming for 2% inflation
• Policy makers in emerging markets will be worried by the Federal Reserve’s decision Wednesday to scale back its asset purchase program, writes Bloomberg Economics Ziad Daoud. Past tapering episodes led to huge capital outflows from emerging markets and currency volatility
• Having abandoned its experimental bond-yield target two days ago, the Reserve Bank of Australia is now left with the trusty old tools of policy making -- facing traders who still reckon it’s behind the curve

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