Rate-Decision Flurry, Fed’s Hawkish Tilt, Tax Hurdles: 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:

  • Federal Reserve officials sped up their expected pace of policy tightening amid optimism about the labor market and heightened concerns for inflation. That shift in outlook has ricocheted through Asian markets
    • The Fed will want to see proof that the spike in prices is more than transitory before taking action on rates, writes Bloomberg Economics’ economists led by Yelena Shulyatyeva
  • There will be a flurry of rate decisions on Thursday. The Swiss central bank is poised to keep its policy rate at a world-record low of -0.75%. Norway will probably hold its deposit rate at zero but cement plans for a hike
    • Rate hold is also expected in Turkey and Egypt. On the other hand, Ukraine is gearing up for a third straight hike
  • In a countryside retreat near Frankfurt this weekend, European Central Bank President Christine Lagarde and her colleagues will try to settle the last remaining arguments in the biggest overhaul of their monetary policy in almost two decades
  • Chancellor of the Exchequer Rishi Sunak said rising prices are one of his near-term concerns, as U.K. inflation surged unexpectedly past the Bank of England’s target
  • The world’s richest nations have set the stage for a revolution in corporate taxation, but they still have their work cut out to actually achieve that overhaul
  • Central bankers sought to play down concerns that their efforts to develop digital currencies will take business away from the financial industry
  • Over in Asia, the Bank of Japan is seen drifting further from an increasingly optimistic Fed on Friday, when it is expected to keep its main stimulus tools in place
  • New Zealand’s economy avoided a double-dip recession as growth surged at three times the pace forecast by economists in the first quarter

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