BOJ Governor: Rate Hikes Linked to Inflation & Growth: Bank of Japan Governor Kazuo Ueda stated
Thursday morning the central bank is prepared to raise interest rates
if consumer price inflation data improves alongside better economic conditions.
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Bank of Japan Governor
Governor Ueda emphasized that monetary policy decisions will depend on developments in economic conditions,
price levels, and prevailing financial circumstances.
He added that expectations for the new U.S. administration’s policies
and the outcomes of domestic wage negotiations will be critical factors in decision-making.
Furthermore, he revealed that the Bank of Japan will discuss
the possibility of raising interest rates during its meeting next week.
According to sources familiar with the matter,
these statements follow a Bloomberg report suggesting that the Bank of Japan might soon increase interest rates.
UK GDP Grows Below Expectations in November
The UK Office for National Statistics released data showing that the country’s real GDP grew by 0.1% in November,
falling short of market expectations of 0.2%. This follows a contraction of 0.1% in October.
Meanwhile, UK manufacturing output shrank by 1.5% in November,
significantly worse than the forecasted 0.2% contraction after a 0.6% decline in October.
These figures indicate persistent pressures on the UK economy,
with the manufacturing sector, in particular,
suffering from declining activity amid growing economic challenges.
Inflation in Russia Surges to 9.5% in 2024 Amid War Costs and Government Spending
Russia’s inflation rate climbed to 9.5% in 2024, up from 7.4% the previous year,
according to data from the Russian Federal Statistics Service, Rosstat.
This increase comes as the costs of the war in Ukraine weigh heavily on the Russian economy.
Despite the Russian central bank raising interest rates to 21%,
the highest level in two decades, inflation remains uncontrolled.
Food prices rose 11.4% over the past year, driven by record-high government spending to finance the war.
While this spending has supported the economy and staved off a recession,
it has also led to labor shortages and rapid price increases.
Notably, this marks the fourth consecutive year inflation exceeded Moscow’s target of 4%.
BOJ Governor: Rate Hikes Linked to Inflation & Growth