September 12, 2024 10:25 GMT
EMERGING MARKETS: Global news: September 12
EMERGING MARKETS
- ECB (MNI) – The ECB will cut the deposit rate by 25bp today. Having previously indicated that the trajectory for policy rates is lower provided that incoming data supports the baseline scenario, the weakening growth outlook and signs of moderating wage pressure provide sufficient cover for the ECB to cut.
- JAPAN (MNI) – BoJ board member Naoki Tamura said on Thursday that the bank will need to raise the policy interest rate to about 1% in the second half of the projection period to March 2027. “I think that the neutral interest rate is at least 1%. The BoJ needs to raise the rate to at least 1% not only to restrict the upside risk to prices but also to achieve the price stability target in a sustainable and stable manner,” Tamura said.
- OIL – Global oil demand growth is “slowing sharply” as China’s economy cools, pushing prices to a three-year low, the IEA said. World consumption increased by 800,000 barrels a day in the first half of the year, barely a third of the expansion in the same period of 2023, the adviser to major economies said in a monthly report. It’s the lowest rate since oil demand crashed during the 2020 pandemic.
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