Sweden's Central Bank Chief Wants 'as Little Bitcoin as Possible' in Country's Financial System: Bloomberg
Sweden's central bank governor emphasizes avoiding involvement with bitcoin due to its speculative nature and history of value collapses.
Sweden led EU in advocating for a ban on crypto mining and abolished tax incentives for data centers, including bitcoin mining, due to energy concerns. [ more ]
Bitcoin Hovers Below $27K as Fed Chair Powell Makes Modestly Dovish Comments
Bitcoin ( BTC) continued to hold below $27,000 as U.S. Federal Reserve Chair Jerome Powell said stress in the banking sector might allow the central bank to ease back on rate hikes as it looks to curb hot inflation.The largest cryptocurrency by market capitalization was recently trading at around $26,800, up roughly 0.3% in the past 24 hours, according to CoinDesk data.
Meme Coin PEPE's Market Cap Surpasses $1B with 896% Surge Over the Past Week Altcoins Bitcoin News
As per the latest statistics recorded before the weekend, the meme token PEPE has witnessed a massive surge in value, following its recent listing on the crypto exchange Binance.In just seven days, the crypto asset has skyrocketed by 896% against the U.S. dollar, making it the third-largest meme token in terms of market valuation.
First Mover Asia: Bitcoin's Kimchi Premium Has Narrowed, but the Korean Market Is Proving Resilient
As East Asia begins its business day, bitcoin and ether continue to climb, buoyed by another chapter of banking unrest and cooler-than-expected jobs data.Bitcoin is opening at $28,644, while ether is up 2% to $1,869.While crypto traders continue to eye U.S. economic data, a new narrative is forming in Korea - and one usual metric has been thrown out of whack.
Bitcoin Heads for Best Quarter in Two Years, Outperforms Ether, Gold, Nasdaq
Bitcoin (BTC) has begun 2023 with a bang, marking a positive turnaround from a year-long swoon.The rebound has put bitcoin ahead of ether, the second-largest cryptocurrency by market value, which appears on track for a 50% quarterly gain.Gold has added over 7%, while Wall Street's tech-heavy index Nasdaq has rallied 15%.
Fed, ECB and Others Take Coordinated Steps to Boost Dollar Liquidity; Bitcoin Tops $28K
The U.S. Federal Reserve (Fed) on Sunday announced it had joined hands with other major central banks to ensure a steady flow of the U.S. dollar, a dominant reserve currency, in the global financial system.The Fed said it would increase the frequency of the dollar swap lines with the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank from weekly to daily, starting Monday.
Digital Assets Worth 2 Billion Rubles Issued in Russia in Less Than a Year Bitcoin News
Digital financial assets (DFAs) for a total exceeding $26 million have been issued in Russia in the past year.This new market has been developing since it was regulated in 2021 and the country's monetary authority started licensing issuers in the following year.Volume of Digital Assets Increases in Russia as Investors Seek Alternatives to Traditional Instruments Less than a year since Central Bank of Russia (CBR)-approved entities began issuing digital financial assets, these have issued DFAs for 2 billion rubles (over $26 million).
ANALYSIS | U.S. pause in rate hikes may give short break to Canadians seeking long-term mortgages | CBC News
For long-term borrowers, Jerome Powell at the U.S. Federal Reserve had some good news and some bad news that could affect Canadians hoping to renew mortgages or extend other loans.The good news is that the U.S. central bank is following the Bank of Canada's lead and after 10 rate hikes in row, has decided to take a break and leave its benchmark rate at about 5.1 per cent.
U.S. central bank holds interest rate steady but says 2 more hikes are coming | CBC News
The Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation.But in a surprise move, the Fed signaled that it may raise rates twice more this year, beginning as soon as next month.The Fed's move to leave its benchmark rate at about 5.1 per cent, its highest level in 16 years, suggests that it believes the much higher borrowing rates it's engineered have made some progress in taming inflation.
U.S. inflation rate drops to 4% in May lowest level in 2 years | CBC News
Consumer prices in the United States cooled last month, rising just 0.1 per cent from April to May and extending the past year's steady easing of inflation.At the same time, some measures of underlying price pressures remained high.Measured year over year, inflation slowed to just 4 per cent in May the lowest 12-month figure in over two years and well below April's 4.9 per cent annual rise.
Data reveals Canada's worst airline; spam calls are here to stay: CBC's Marketplace cheat sheet | CBC News
Miss something this week?Don't panic.CBC's Marketplace rounds up the consumer and health news you need.Want this in your inbox?Get the Marketplace newsletter every Friday.Flair is Canada's worst airline when it comes to passenger complaints, according to federal data Apparently the ultra-low cost of Flair is coming at a cost, with more than 20 per cent of its flights generating some sort of complaint to the Canadian Transport Agency (CTA), federal data shows.
ANALYSIS | As interest rates rise and inflation falls, suddenly borrowing money isn't cheap any more | CBC News
It will likely be hard to convince Canadians struggling with newly increased mortgage payments, but until very recently money has been free.Until recently, during that latest surge in inflation, borrowing to buy something was actually a lot cheaper than waiting to buy it a year later.That is because what economists call real interest rates were negative.
Britain Braces for High Rates as Inflation Signals Get Stronger
Britain on Tuesday received another sign that inflation could painfully linger.The country braced, once again, for higher interest rates as bond yields climbed above the levels when Liz Truss was prime minister last year.Data showed that wage growth, a closely watched indicator for how deeply inflation is embedding in an economy, was rising in Britain at the fastest pace in at least two decades.
Britain's Inflation Slowed in April, but Remains Stubbornly High
Britain's inflation rate dropped its lowest level in more than a year in April as the effects of last year's surge in energy prices started to ease.Consumer prices in Britain rose 8.7 percent from a year earlier, the slowest pace since March 2022, the Office for National Statistics said on Wednesday.
Polls are open in Turkey's tightly fought election which could oust President Erdogan
A woman votes at a polling station in Ankara, Turkey, Sunday, May 14, 2023.Voters in Turkey go to the polls on Sunday for pivotal parliamentary and presidential elections that are expected to be tightly contested and could be the biggest challenge Turkish President Recep Tayyip Erdogan faces in his two decades in power.
Credit Suisse shares soar after securing a $54 billion lifeline from Switzerland
The company logo is seen at the global headquarters of Swiss bank Credit Suisse in Zurich, Switzerland.Arnd Wiegmann/Getty Images Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland's central bank, an emergency step intended to prop up investor confidence in the troubled European bank.
We told you so': Brexit to blame for soaring inflation, former Bank of England boss
The fallout from Brexit is to blame for Britain's out-of-control inflation, the former boss of the Bank of England has said.Mark Carney, who warned leaving the EU was the biggest domestic risk facing Britain before the 2016 referendum, said there is no joy in being proved right because of the impact on millions of households.
Food prices set to come back down soon, supermarket chiefs promise
Supermarket bosses are said to have told Rishi Sunak's government that food price inflation has already peaked and costs to the consumer will start to fall in the coming months.It comes after the Bank of England food price pressures had proved more sticky than expected as UK inflation remains stubbornly high.
Pound climbs to highest level against dollar in almost a year
The pound has climbed to its highest level against the dollar in almost a year as the US banking crisis spreads.Sterling rose to $1.26 on Friday morning, an increase of half a cent its greatest recovery since late May 2022.Last autumn, the pound plummeted to its lowest level against the dollar in history, as the markets responded nervously to the announcement of then-prime minister Liz Truss and chancellor Kwasi Kwarteng's disastrous mini-budget, which ushered in the nation's biggest tax cuts in 50 years.
Referendum the price of SNP support for Labour government, candidates say
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The candidates to succeed Nicola Sturgeon have said the price of SNP support under their leadership for a minority Labour government after the next election would be another referendum on independence.
Failure to grasp UK inflation drivers will continue to keep prices high
Inflation is falling, but not as fast as everyone hoped.The Bank of England expected a bigger drop and so did the majority of City analysts.A fall in the consumer prices index (CPI) to 8.7% in April from 10.1% in March put an end to the UK's long period of double-digit price rises, but was not the 8.2% analysts forecast.
IMF says UK no longer heading for recession but urges against tax cuts
The International Monetary Fund has upgraded its forecasts for UK growth, saying the country will no longer fall into recession this year, but warned the government not to cut taxes as that would fuel inflation and result in high interest rates for longer.In a message to the chancellor, Jeremy Hunt, that he should maintain his planned squeeze on public spending, the Washington-based body said tax policy should stay aligned with monetary policy in the fight against inflation.
The European Central Bank has raised interest rates across the eurozone by 0.5 percentage points, despite fears that higher borrowing costs could set off a domino effect across the financial sector amid fears about the stability of Credit Suisse.Officials at the ECB, the central bank covering the 19-member euro-bloc, said inflation was likely to remain high for too long, forcing it to continue with its planned run of rate increases.
The Fed is not done with rate hikes, even as the housing industry begs for mercy
Bond yields and rates started to rise as the debt ceiling was getting closer and closer, and we have had such big bond market auctions to deal with that pushed yields higher, even after a tame inflation report, Mohtashami said.Once the bond auctions are done with, the economic data should be impacting the 10-yield Treasury yields, he added.
Debt Ceiling Uncertainty Could Push Mortgage Rates Higher in June
Getty Images The economic outlook is hazy any month of the year, but June's uncertainty is murkier than usual.The unpredictability is driven by two unknowns: the fate of the federal government's debt ceiling and what the Federal Reserve will do at its June 13-14 monetary policy meeting.Mortgage rates could rise through the first half of June, then level off or fall in the second half after the market digests the results of the mid-month Fed meeting.
The debt limit fight between the Republican-controlled House of Representatives and President Joe Biden's White House is adding pressure to a shrinking mortgage market.Amid the rising risk of government default, mortgage rates increased to the highest level in two months last week, and its spread to the Treasury bonds widened above the historical average.
Mortgage pain ahead as Bank of England raises interest rate
Millions of Britons are facing painful increases in their mortgage costs after the Bank of England raised interest rates for the 12th time in a row to tackle stubbornly high inflation.The Bank rejected accusations that it had gone too far and was overcorrecting for the inflation crisis after the Monetary Policy Committee (MPC) voted to hike the base interest rate from 4.25 per cent to 4.5 per cent.
Wall Street finds its footing even as worry about regional banks continues.
Upheaval in financial markets continued on Thursday, as investors balanced pockets of turmoil emanating from the banking industry against some semblance of stability returning to the broader market.The S&P 500 opened with a drop, before quickly rallying to a gain of more than 1 percent by midday.
Credit Suisse to borrow $54 billion from Swiss central bank
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Swiss bank Credit Suisse said Thursday it will move to shore up its finances, borrowing up to $54 billion from the central bank after its shares plunged, dragging down other major European lenders in the wake of bank failures in the United States.
Chancellor: No alternative' to interest rate rises to bring down inflation
The UK has no alternative but to raise interest rates in an effort to bring down inflation, Chancellor Jeremy Hunt has warned.Households are braced for a further increase in rates which already sit at a 14-year-high of 4.5% from the Bank of England next week.Mr Hunt said the Government will be unstinting in supporting the central bank in its efforts to grapple rampant inflation and attempt to bring it back towards a target of 2%.
Lebanese Central Bank governor no-show in Paris corruption probe
Lebanon's embattled Central Bank governor failed to appear before French prosecutors on Tuesday to be questioned on corruption charges, officials said.A European judicial team from France, Germany and Luxembourg is conducting a corruption probe into an array of financial crimes, including illicit enrichment and alleged laundering of $330 million, implicating the Lebanese governor, Riad Salameh.
Lebanon's finance minister questioned in Central Bank probe
A European judicial team questioned Lebanon's caretaker finance minister on Friday in an investigation related to corruption probes of the country's Central Bank governor, officials said.The questioning is part of a probe by a delegation from France, Germany, and Luxembourg, now on its third visit to Lebanon to interrogate suspects and witnesses in the case.
European team ends questioning of Lebanon Central Bank chief
A European legal team on Friday ended two days of questioning of Lebanon's central bank chief in Beirut in a money-laundering probe linked to the governor.Several European countries are investigating Gov. Riad Salameh, who in recent years has been charged with corruption-related crimes.Salameh, 72, has been the head of Lebanon's Central Bank since 1993.
UK has no choice but to raise interest rates to curb inflation, says Jeremy Hunt
Jeremy Hunt has said the UK has no alternative but to raise interest rates to bring down inflation , as households brace for the Bank of England to increase borrowing costs further next week.The chancellor said the government would be unstinting in its support for the central bank to do what it takes to squeeze high inflation out of the system amid the cost of living crisis.
Labour doesn't need to sabotage its green prosperity plan just to cost it clearly | John McDonnell
Today, Rachel Reeves announced that she is delaying plans to borrow 28bn a year for a green prosperity fund under a Labour government.There may be some influential people in the Labour party who never supported the plan in the first place maybe because it looked so much like the 2019 manifesto.And now, perhaps as a result, we're seeing any excuse being used to undermine it.
US consumer price growth slowed last month as inflation shows signs of steady decline
WASHINGTON (AP) - Consumer prices in the United States cooled last month, rising just 0.1% from April to May and extending the past year's steady easing of inflation.At the same time, some measures of underlying price pressures remained high.Measured year over year, inflation slowed to just 4% in May - the lowest 12-month figure in over two years and well below April's 4.9% annual rise.
Mortgage rates decline following debt ceiling deal
The U.S. debt ceiling impasse was solved when President Joe Biden signed a bill on Saturday to suspend the $31.4 trillion limit until January 2025 and cap government spending.It alleviated some pressure on mortgage rates, which declined over the past week.But uncertainties over the Federal Reserves (Fed) next steps are keeping mortgage rates high, with the 30-year fixed mortgage rate above 6.5% for the third consecutive week.
Why industry watchers expect mortgage rates to fluctuate in coming weeks
The Federal Reserve's decision to raise the federal funds rate by 25 basis points on Wednesday signaled that officials are still focused on bringing down inflation to 2% while monitoring how much recent bank failures slow lending in the economy and cool demand.Mortgage rates, which climbed upward one day and went down the next in the wake of the recent wave of bank failures, will continue to be volatile before it stabilizes, industry watchers said.
Mortgage rates inch closer to 7% in the midst of a strong economy
Economic data indicating that the U.S. economy has remained resilient despite the Federal Reserve's tightening monetary policy led to a substantial increase in mortgage rates last week.Does this mean mortgage rates are close to reaching the 7% level again?"Mortgage rates have been rising after the jobs report was solid, retail sales beat expectations, and the homebuilder's confidence is rising," Logan Mohtashami, lead analyst for HousingWire, said.
Mortgage demand falls again as mortgage rates climb closer to 7%
It's proving to be a brutal February for the mortgage industry, with mortgage demand falling for the third time in four weeks.At a time when purchase activity typically ramps up, the latest mortgage application data is showing that mortgage demand is dropping due to mortgage rates climbing back up.Mortgage applications decreased 13.3% for the week ending February 17 compared to the previous week, according to the Mortgage Bankers Association.
Mortgage rates climb as Fed signals more aggressive rate hikes
Federal Reserve Chairman Jerome Powell sent a clear message during his U.S. Senate speech on Tuesday morning: Fed officials are likely to deliver higher rate hikes than previously expected to combat persistent inflation."As I mentioned, the latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell said.
Issuance of agency mortgage-backed securities ( MBS) is projected to contract significantly over the next two years in the face of a housing-market contraction, but the actual supply of MBS available for purchase in the private market is expected to swell to record levels over that period.That's the takeaway from a recent market report by The Amherst Group, a real estate investment firm based in Austin, Texas.
A $1 Trillion Borrowing Binge Looms After Debt Limit Standoff
The United States narrowly avoided a default when President Biden signed legislation on Saturday that allowed the Treasury Department, which was perilously close to running out of cash, permission to borrow more money to pay the nation's bills.Now, the Treasury is starting to build up its reserves and the coming borrowing binge could present complications that rattle the economy.
WASHINGTON President Biden on Friday said he would nominate Adriana Kugler for a seat on the Federal Reserve Board and would elevate Philip Jefferson, a current governor, as vice chair of the central bank.If they are confirmed by the Senate, the Fed would get its first Latina board member and its second Black vice chair, a move that could both make the Fed more diverse and build out its leadership team at a challenging economic moment.
Banks Are Borrowing More From the Fed: What to Know
Banks are turning to the Federal Reserve's loan programs to access funding as turmoil sweeps the financial system in the wake several high-profile bank failures.The collapse of Silicon Valley Bank on March 10 followed by Signature Bank on March 12 prompted depositors to pull their money from some banks and sent the stock prices for financial firms on a roller-coaster ride.
Biden White House keeps confronting a good problem: A hot labor market
The Biden White House is once again rooting for a Goldilocks jobs number on Friday, as the Federal Reserve considers increasing its pace of interest rate hikes in the coming weeks as a part of its ongoing efforts to tame inflation.The US Bureau of Labor Statistics is set to announce how many jobs were added to the US economy in the month of February and where the unemployment rate stands and White House officials are keeping their fingers crossed for a moderate report, hoping to land in the sweet spot of around 250,000 jobs added last month.
The US is paying a record amount of interest on its debt. It's only going to get worse
Like many Americans, the federal government is shelling out a lot more money to cover interest payments on its debt after a series of Federal Reserve rate hikes over the past year.The Treasury Department paid a record $213 billion in interest payments on the national debt in the last quarter of 2022, up $63 billion from the same period a year earlier.
Turkey's Lira Falls to New Low as a New Economic Policy Forms
The value of the Turkish lira as measured in dollars plunged Wednesday by more than 7 percent to a record low, signaling a potential shift in the government's economic policy.Under President Recep Tayyip Erdogan, Turkey's government has been at pains to prop up the value of the lira, creating incentives to prevent people from exchanging the currency and pushing the central bank to sell off foreign exchange reserves.
Turkey's Opposition Struggles to Make Up Ground as Runoff Nears
After heading into elections with high hopes, Turkey's political opposition is struggling to fight off despair and plot a course to give their candidate a fighting chance against the incumbent, Recep Tayyip Erdogan, in a runoff later this month.While Mr. Erdogan, bidding for a third five-year presidential term, failed to win a simple majority in Sunday's election, he still led the opposition by a margin of about five percentage points.
Bank of England Raises Interest Rates to Highest Level in 15 Years
The Bank of England raised interest rates on Thursday, its 12th consecutive increase, as Britain's inflation rate remained stubbornly in the double digits.Policymakers lifted the central bank's key interest rate by a quarter of a percentage point to 4.5 percent, the highest since 2008.The long and aggressive policy tightening has continued as Britain experiences inflation that is higher than in the United States and Western Europe.
Britain's inflation rate unexpectedly rose last month, reversing its recent downward trend and potentially undermining expectations that the Bank of England was close to halting interest rate increases.Consumer prices in Britain rose 10.4 percent in February compared with a year earlier, the Office for National Statistics said on Wednesday.
If inflation and rising interest rates weren't enough to cause anxiety about the global economy, bank failures, or near collapses, have been added to the mix.But once again, Canada's banking system has come out, so far, looking reassuringly sober and stable.Image Six large banks dominate Canada's market.Credit...Ian Austen/The New York Times The dismal banking news continued through the week.
Brexit will be known as historic economic error', says former US treasury secretary
Brexit will be remembered as a historic economic error, which damaged the UK economy and has helped to drive inflation higher, according to the former US treasury secretary Larry Summers.Singling out Britain's departure from the EU as a factor for higher costs, Summers also criticised the UK's economic policy as substantially flawed for some years.
Fed Officials Were Split Over June Rate Pause, Minutes Show
Federal Reserve officials were unanimous in their decision to raise interest rates earlier this month, but were conflicted over whether additional increases would be necessary to bring inflation under control, according to minutes from the Fed's last meeting released on Wednesday.The Fed voted to raise interest rates by a quarter-point on May 3, to a range of 5 to 5.25 percent, the 10th straight increase since the central bank started its campaign to rein in inflation last year.
Households now owe more than Canada's entire economy, CMHC says | CBC News
Canadian households are more in debt than those in any other G7 country, and the amount they owe is now more than the value of the country's entire economy.That was one of the main takeaways of a new report from Canada's housing agency, the Canada Mortgage and Housing Corporation, which backstops much of the country's housing market via mortgage insurance.
1.5m UK homeowners on variable rate mortgages face new borrowing rise
Almost 1.5 million homeowners with variable rate mortgages face higher borrowing costs with the Bank of England expected to push up interest rates on Thursday to 4.5%.A poll of City analysts found there was a 96% chance the central bank would increase its base rate by 0.25 percentage points when policymakers meet to tackle Britain's stubbornly high inflation rate.
Federal Reserve raises interest rate to the highest level in 16 years
The Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years.But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive.
The European Central Bank is facing a dilemma over whether to push ahead with its plans for a large interest rise on Thursday amid fears over the strength of the banking system after Wednesday's heavy sell-off of the Swiss banking giant Credit Suisse.After raising interest rates since last summer at a record pace to tackle high inflation across the eurozone, the ECB had effectively committed to another 0.5 percentage point increase in borrowing costs this week.
Canada's economy grew by more than expected in first quarter, upping odds of rate hike next week | CBC News
The Canadian economy grew at an annualized rate of 3.1 per cent in the first quarter of 2023, Statistics Canada reported Wednesday.The latest data shows growth beat out the federal agency's own forecast of 2.5 per cent for the quarter.A preliminary estimate suggests the economy grew by 0.2 per cent in April, after remaining flat in March.
It is an unfortunate rule that bad things also happen to optimistic people.Just as new consumer confidence figures from the Conference Board of Canada show "a three month streak" of growing optimism, worrywarts from the commercial banks, the Canada Mortgage and Housing Corporation (CMHC) and the Bank of Canada, seem to be saying "not so fast."
Bank of Canada says just about every mortgage is going to cost more by 2026 | CBC News
The Bank of Canada is more worried than it was last year about household debt loads, and is concerned about the abilities for households to stay on top of them in the coming years once mortgages renew at higher rates.That's one of the main takeaways of the bank's Financial System Review, an annual assessment of various risks the bank deems to be of concern to the stability of Canada's financial system.
Inflation rate unexpectedly increased in April, jumping up to 4.4% | CBC News
Canada's inflation rate reversed its cooling trend last month and moved higher, to a 4.4 per cent annual rate.Economists had been expecting new data released by Statistics Canada on Tuesday to show the cost of living had eased from March's 4.3 per cent pace to something around 4.1.Instead, it moved higher again, as the cost of things like gasoline, rent and mortgages increased during the month.
The housing market slowdown may be over, as average selling prices have now gone up 4 months in a row | CBC News
After plunging due to interest rate hikes throughout last year, the average price of a Canadian resale home has now increased for four months in a row, new numbers showed Monday.The Canadian Real Estate Association said Monday that the average selling price of a home that sold on its MLS system in April went for $716,000.
U.S. inflation rate cools to 4.9% but consumer prices still stubbornly high | CBC News
Consumer prices in the United States rose again in April, and measures of underlying inflation stayed high, suggesting that rising costs could persist for months to come.Prices rose 0.4 per ent from March to April, the government said Wednesday, up from 0.1 per cent from February to March.Compared with a year earlier, prices climbed 4.9 per cent, down slightly from March's year-over-year increase.
European Central Bank raises interest rates for seventh time in a row
The European Central Bank has raised interest rates by a quarter of a percentage point to tackle inflationary pressures across the eurozone.It marks the seventh successive rise in borrowing costs in the single currency bloc, the decision comes after the US Federal Reserve raised rates to the highest level in 16 years on Wednesday despite concerns about the worst banking crisis since 2008.
Bitcoin, Ethereum Technical Analysis: BTC, ETH Rebound on Wednesday, as Fed Meeting Looms Market Updates Bitcoin News
Market Updates by Eliman Dambell Bitcoin rebounded from Tuesday's losses, as all focus in the market turned to today's United States Federal Reserve rate decision.It is widely expected that the Fed will hike rates by 25 basis points in May's meeting.Ethereum also moved higher, nearing $1,900 in the process.
Report: Kenya to Start Levying Tax on Revenue Earned by Crypto Exchanges Bitcoin News
According to regulations published by the country's treasury secretary, global crypto exchanges used by Kenya's estimated 4 million users will start paying a 1.5% tax on revenues earned.Tax-Avoiding Digital Asset Platforms The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents.
ANALYSIS | Bank of Canada's Carolyn Rogers says unjustified wage hikes could mean higher interest rates | CBC News
Public outrage over a continued rise in grocery prices this week and the prospect of a strong jobs report may be signs that the Bank of Canada has not yet finished hiking interest rates.Speaking to the Manitoba Chambers of Commerce on Thursday in her hometown of Winnipeg, with her parents and her sister in the audience, the Bank of Canada's senior deputy governor, Carolyn Rogers, implied that despite the bank's pause this week, there may be higher interest rates ahead.
Ark Invest on $1.4M BTC, Possible Julian Assange-Linked File on Bitcoin Blockchain Week in Review The Weekly Bitcoin News
The Weekly by Bitcoin.comInvestment management firm Ark Invest has offered three bitcoin price predictions in a new report, including a bull scenario where bitcoin could reach $1.48 million per coin.In other news, a 7zip file possibly linked to activist Julian Assange was reportedly discovered in the Bitcoin blockchain, and billionaire investor Tim Draper has encouraged the government of Sri Lanka to adopt bitcoin.
After 10 rate hikes in a row, the U.S. central bank just hinted it may be finished | CBC News
The Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years.But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive.
Getty Images Mortgage rates have room to fall in May as the end draws near for this cycle of Federal Reserve rate increases.It's quite possible that this year's mortgage rates already peaked in March.They could gradually drop as unemployment rises, companies become less generous with wage increases and inflation subsides.
In March, Mortgage Rates Will Have Little Reason to Fall
Getty Images The economic calendar in March is not friendly to mortgage rates.There's not much on it to motivate rates to fall.After rising sharply in February, mortgage rates are more likely to level off or go up a little more.Three dates on the economic calendar will dominate the outlook for mortgage rates:
America is now two years into abnormally high inflation and while the nation appears to be past the worst phase of the biggest spike in price increases in half a century, the road back to normal is a long and uncertain one.The pop in prices over the 24 months that ended in March eroded wage gains, burdened consumers and spurred a Federal Reserve response that has the potential to cause a recession.
ANALYSIS | Central bank will learn from pandemic experiences if global financial crisis hits Canada | CBC News
The Bank of Canada is ready to defend Canadian banks from a global financial meltdown if the current banking crisis in the U.S. and Europe spills into Canada, but the central bank does not think they will have to step in.Speaking on Wednesday at the National Bank Financial Services Conference, Bank of Canada deputy governor Toni Gravelle declared that the bank was "ready to act in the event of severe market-wide stress and provide liquidity support to the financial system."
ANALYSIS | Global financial contagion means everyone is 'waiting to see where the bodies are buried' | CBC News
Is it possible to talk about financial contagion without perpetuating it?Regulators and public officials are anxious to be reassuring, but for Canadians trying to understand how a series of ostensibly unconnected global bank failures could affect them, being like the meme dog in the burning kitchen that turned 10 this year may not be the best plan either.
Banks aren't out of the woods yet and neither is the economy. Here's why
Markets seesawed severely this week when two of the US economy's most prominent leaders gave seemingly contradictory statements on the health of the banking sector.Expect more turbulence ahead.Fresh off of the Federal Reserve's decision on Wednesday to hike interest rates by a quarter point, Fed Chairman Jerome Powell said in the central bank's post-meeting press conference that all depositors' savings are safe.
Bank of England hikes interest rates following inflation shock
The Bank of England hiked interest rates by a quarter of a percentage point Thursday, extending its long-running fight against inflation, which rose unexpectedly in February.The central bank's 11th consecutive rate hike takes its benchmark rate to 4.25%, the highest since October 2008.Like other major central banks, it has pushed ahead with raising the cost of borrowing despite recent turmoil in the banking sector.
Swiss central bank says crisis halted as it hikes interest rates
Switzerland's banking crisis has been halted, the country's central bank said Thursday as it hiked interest rates for the fourth time in a bid to contain inflation.Together with the Swiss government and financial market regulator FINMA, the Swiss National Bank helped orchestrate the emergency takeover of Credit Suisse (CS) by UBS (UBS)on Sunday to prevent the collapse of the country's second-biggest bank.
Most Asian shares reverse early losses after US Fed raises rates by a quarter point
Most Asia Pacific shares pared early losses on Thursday, after the US Federal Reserve reaffirmed its dedication to bring down inflation.In Hong Kong, the benchmark Hang Seng (HSI) index traded 1.5% higher, leading gainers in the region.One of the top gainers was internet giant Tencent, which was more than 7% higher after posting a strong rise in its online advertising business in the December quarter on Wednesday.
Asia Pacific stocks rise as investor worries about global banking turmoil ease
Stocks in the Asia Pacific region rose Tuesday as concerns about the global banking sector eased in response to a whirlwind of intervention by policymakers and industry players.The S&P/ASX 200 in Australia jumped 1.3%, boosted by its AXFJ index, a measure of banking stocks, which surged 1.7%.In Hong Kong, the Hang Seng Index (HSI) opened up 0.8%.
Is my money safe after bank collapses? Former Goldman Sachs CEO says sort of
In the wake of failures at Silicon Valley Bank and Signature Bank and separate issues at Credit Suisse and First Republic, many Americans are asking the question: Is my money safe?Lloyd Blankfein, the former CEO of Goldman Sachs said the answer is not black and white on Fareed Zakaria GPS Sunday.The answer is kind of a yes with an ellipsis, Blankfein said.
Fed's unwanted ally in bid to tame inflation: Credit crunch
The Federal Reserve is getting some unwanted help in its drive to slow the U.S. economy and defeat the worst bout of inflation in four decades: a cutback in bank lending.The upheaval in the financial system that's followed the collapse of two major U.S. banks is raising the likelihood that lending standards will become sharply more restrictive.
Stock markets tumbled on Wednesday, as investors' fears over the health of the banking industry resurfaced, and spread around the world, undoing a rally on Tuesday when the panic appeared to pause.European markets were hard hit, with stocks of many of the region's biggest banks falling sharply.Premarket trading in the United States also suggested that much of Tuesday's gain could be swiftly erased, as anxiety persists about the fallout from the collapse of Silicon Valley Bank and Signature Bank, which were seized by regulators after suffering devastating runs on deposits.
Wall Street rises on relief over banks and inflation.
Wall Street's worries eased on Tuesday, as investors took comfort from signs that a potential banking crisis appeared contained and bet on a more supportive environment for the economy going forward.The S&P 500 rose 1.7 percent, lifted by a recovery in some bank stocks and bolstered by gains for heavyweights like Microsoft and Apple, which because of their size have a bigger impact on the performance of the broader index.
With Wall St. Jumpy Again, the Jobs Report Could Offer Some Clarity
March 8 March 9 3,920 3,940 3,960 3,980 4,000 Data delayed at least 15 minutes Source: FactSet By: Ella Koeze The debate on Wall Street over the prospects for the American economy moved decidedly back toward the gloomy this week, as investors again recalibrated their expectations for how high interest rates could go.
ANALYSIS | Bank failures offer Jerome Powell new lessons as U.S. Federal Reserve makes policy on the fly | CBC News
Crisis is a great teacher for central bankers and for the rest of us.Canadians who thought money was an unchanging unit for earning, saving and spending learned their lesson from a year of inflation.And anyone who thought banks were glorified instant teller machines certainly learned something over the last two weeks as they watched contagion from the disintegrating Silicon Valley Bank (SVB) help bring down Swiss banking giant Credit Suisse.
Against backdrop of banking crisis, U.S. federal reserve set to reveal latest rate decision Wednesday | CBC News
The Federal Reserve is set to announce its latest interest rate policy Wednesday, a decision that is a much more in doubt than it was barely a month ago due to the smouldering crisis in the U.S. banking system.Most economists who watch the U.S. central bank expect it to raise its trendsetting interest rate by another quarter of a percentage point, as part of its ongoing campaign to wrestle inflation into submission.
Inflation rate drops to 5.2% in February but grocery prices are still up | CBC News
Canada's inflation rate cooled to 5.2 per cent in February, the largest deceleration since April 2020, according to Statistics Canada.The agency said its consumer price index had a year-over-year deceleration from February 2022, when the inflation rate was 5.7 per cent.The reading compared with an annual inflation rate of 5.9 per cent in January and was the lowest reading since January 2022, when it was 5.1 per cent.
Credit Suisse shares soar after $54B central bank loan | CBC News
Credit Suisse's shares soared 30 per cent on Thursday after it announced it will move to shore up its finances by borrowing up to nearly $54 billion US from the Swiss central bank, bolstering confidence as fears about the banking system moved from the U.S. to Europe.It was a massive swing from a day earlier, when shares of Switzerland's second-largest commercial bank plunged 30 per cent on the SIX stock exchange after its biggest shareholder said it would not put more money into Credit Suisse.
Should The Fed Have CEO's On The Board? Boston Condos For Sale Ford Realty
Should the Fed have CEO's on the board?"Frankly, I don't know how you avert a serious financial crisis where we are right now," Langone told Fox Business on Wednesday."If and when the big crash comes, it's not going to be pretty."The way Langone sees it, the central bank made a key mistake in 2021 by not raising interest rates to quickly beat inflation, which was already more than double its 2% target.
High inflation top of mind at Bank of Canada decision making, deliberations summary shows | CBC News
The Bank of Canada's governing council ultimately decided to hike its key interest rate last month because of ongoing strength in the economy and inflationary pressures.In its first-ever summary of deliberations, the central bank pointed to a tight labour market, strong GDP readings and the risk of inflation getting stuck above two per cent as the rationale behind raising its key rate by a quarter of a percentage point on Jan. 25.
Brexit is a self-inflicted wound of unparalleled severity | Phillip Inman
Whenever Andrew Bailey, the governor of the Bank of England, talks about the economy, he is forced to mention the toll taken by Brexit.Business leaders, initially reluctant to criticise the Tory decision to quit the EU, have begun to find their voice.Most recently, leading City figure Guy Hands called Brexit a complete disaster and a bunch of total lies that has harmed large parts of the economy.
Japan nominates new central bank leader in possible move away from ultra-easy policy
The Japanese government has nominated Kazuo Ueda to lead its central bank, in a surprise move that could pave the way for the country to wind down its ultra-loose monetary policy.If appointed, Ueda a 71-year-old university professor and a former Bank of Japan (BOJ) board member would succeed Haruhiko Kuroda, the country's longest serving central bank chief and the architect of its current yield curve control policy (YCC).
U.S. inflation barely budges to 6.4% as food, gas and shelter get more expensive | CBC News
The U.S. annual inflation rate barely changed in January as the cost of things like food, shelter and gasoline got more expensive during the month.The U.S. Bureau of Labour Statistics reported Tuesday that the Consumer Price Index came in at 6.4 per cent for the 12 months up until the end of January.