The Bank of England is urged to combat inflation at a faster pace.
The Central Bank of England seeks to accelerate the pace of facing inflation at its meeting next week,
It will thus join 70 countries around the world that have made a payment of
at least 0.5 percentage points against borrowing costs,
and many analysts and investors expect the Bank of England to resort to increasing interest rates in England
to reach To its historic levels in 27 years,
a suggestion came from “Andrew Bailey“, President of the Bank of England,
that policy makers are ready to curb inflation and act aggressively if necessary.
topic
The Bank of England expects that we will see an increase in prices
Global Bonds Gain in July Amid Recession Fears.
Pelosi’s visit to Taiwan Will it ignite the confrontation between Washington and Beijing?
The Bank of England expects that we will see an increase in prices
that may reach 11% during 2022, which will increase the burdens on the citizen in Britain and the difficulty of living
that he has been experiencing for two decades,
at a time when the citizen resorts to asking for help from the government,
and despite that we do not find Raising the interest rate by half a point is certain,
because the recession and its risks made investors reduce their bets on any significant hikes on August 4th.
The British central bank is still under pressure due to central banks around the world
that are also accelerating the pace of raising interest rates,
although England is the first country that decided to raise interest rates to confront the epidemic,
at a time when the US Federal Reserve raised interest rates by 75 basis points during the last two months.
Thus, the interest rates for the item of the Federal Reserve are 2.5%,
compared to 1.25% for the Bank of England and zero at the European Central Bank.
The economy in England returned to the stage of growth in May after a period of two months in the deflationary phase,
at a time when inflation came at 9.4%, which is slightly higher than expectations in the month of June,
and wages rose by 6.2% during the three months to May,
Which represents a smaller percentage of the price increase.
The Central Bank of England has always indicated the possibility of raising interest rates by 50 basis points in August,
if it finds itself in front of signs of continued inflation pressure,
and it is expected that policy makers will vote in favor of the decision to increase interest rates from 1.25% to 1.75%,
in addition to that The market indicates a 70% chance of a 50 basis point increase.
Global Bonds Gain in July Amid Recession Fears.
The global bond market witnessed significant gains during the month of July of this year,
thus achieving the highest percentage of profits since November 2020,
and these increases came with the rise in the “Bloomberg” index at a time
when the world’s economies are suffering from the recession that is pressing them strongly,
as well as the increasing interest rates dramatically fast in America.
After the US Federal Reserve’s decision to raise interest rates at its last meeting of this month to 75 basis points,
Jerome Powell had indicated the monetary tightening policy,
which may witness a slowdown, according to economic data,
and this supported the recovery, but on the day after the meeting,
reports were issued indicating a contraction of the economy The US economy in the second quarter in a row,
confirming the view of global deflation as the new market base for investors,
which will be the obstacle in the way of the upward trend of the consumer price index.
Experts have emphasized
that history always indicates
that the reduction in inflation is due to the stages of stagnation that the economy is going through,
and global bonds have risen with the lax position of the US Federal Reserve in the face of inflation,
and the Australian government bond market has witnessed a rise of 2.4% in the month of July,
thus reaching gains Monthly, it has not achieved since May 2012,
at a time when the yields on government bonds in the United States for 10 years declined by 9.5%
during the first half due to the recent GDP data,
in addition to a group of decisions considered wrong in the central bank policy,
and this central banks are currently resorting to To confront inflation only by raising official interest rates,
which represent the highest and which destroys demand.
An index that measures and tracks investment-grade euro-denominated corporate debt rose 4.7% in July,
in addition to a better monthly performance since November 2020 on
the investment-grade US dollar-denominated debt index,
with some analysts warning that the rise is fading quickly due to fear of risks.
Recession in major economies.
This does not believe that the current recovery in global bonds will continue,
as “Sky Masters” said, that the market cannot believe
that this is just a temporary period of comfortable recovery
and not the beginning of the monetary easing policy as soon as expected,
and inflation is still high.
Pelosi’s visit to Taiwan Will it ignite the confrontation between Washington and Beijing?
Amid a fiery atmosphere between Washington and Beijing,
a US House of Representatives plane departed hours ago on a visit to Asia,
headed by US House Speaker Nancy Pelosi, the Congressional delegation on the trip.
The Chinese authorities described this flight as a disastrous visit that could cause serious consequences
and plunge the world into an unprecedented war.
American sources revealed the program of the trip to Asia,
which will include Japan, South Korea, Malaysia and Singapore,
in addition to Taiwan, which is on the lists of the trip,
but it is not confirmed so far, amid strong warnings from the Chinese side to America
and the need to avoid visiting Taiwan, which it considers part of its territory,
and that it Ready to defend China’s unity in reference to Taiwan visit.
The visit to Asia
by the Speaker of the House of Representatives was scheduled to start today,
Sunday, as she took off from Andrews Air Force Base near Washington,
and includes the four countries. Partnership and Democratic Governance in the Indo-Pacific.
The visit to Taiwan was scheduled to be part of Pelosi’s trip,
at the same time Taiwan is trying to prepare for any emergency circumstances by raising its fighters in the air
and deploying air defense systems at the Taiwan International Airport in the north of the island.
In Beijing, it strongly warns the US visit to Taiwan and demands its cancellation,
at a time when Chinese media are proposing to shoot down Pelosi’s plane if she insists on her visit to Taiwan,
and China is conducting military exercises today near the coast facing Taiwan,
and the exercises will be with live ammunition
The Chinese authorities
are still strongly warning and are ready to respond to
the possible visit of a congressional delegation to the island in Taiwan,
and expectations indicate that the response will include military,
diplomatic, economic and social escalation.
On the American side, Pelosi is considered the third most senior figure in the US administration,
and the issue of her visit to Taiwan is sensitive and represents a step forward in the ongoing confrontations
between Washington and Beijing, which indicates the complexity of the task further
and avoiding strained relations with the Asian giant.
Biden, in his last call with his Chinese counterpart Xi Jinping,
said that America had not changed its position towards threatening security
and stability in the Taiwan Strait.
artical name The Bank of England is urged to combat inflation