SA Reserve Bank Develops New Measures to Assess Inflation Pressures

In an effort to gain a deeper understanding of underlying price dynamics, the South African Reserve Bank (SARB) has introduced two new inflation metrics: the Persistent and Common Component of Inflation (PCCI) and the Supercore measure. These measures will supplement the headline and core inflation data currently published by Statistics South Africa, providing additional insights to inform monetary policy decisions.

Monetary Policy and the Perils of Fiscal Deficits

The article explores the complex relationship between monetary policy, fiscal deficits, and the overall health of the economy. It highlights the potential dangers of excessive fiscal deficits and argues that a balanced budget is crucial for long-term economic stability. The article also discusses the role of gold and other risk-off assets in times of economic uncertainty.

HSBC’s Asia FX Research Head Joey Chew Discusses Outlook for Currency and Monetary Policy

In this interview, Joey Chew, HSBC’s head of Asia FX Research, shares insights into the outlook for the currency and monetary policy in Asia. Chew discusses the impact of the COVID-19 pandemic, the global economic recovery, and the geopolitical tensions in the region. He also provides his views on the potential for a stronger US dollar and the implications for Asian currencies. This article is essential reading for anyone interested in the latest developments in the Asian currency markets.

Bank of America Previews Bank of Japan’s Upcoming Monetary Policy Meeting

Bank of America predicts the Bank of Japan (BoJ) will maintain its current interest rate target range at 0-0.1% at its upcoming monetary policy meeting on April 26, 2024. The BoJ recently exited its negative interest rate policy and overhauled its monetary framework, and is now assessing the impact of these changes. Governor Ueda has indicated that the bank’s focus is on evaluating the effects of the recent policy modifications on the economy and inflation. The quarterly Outlook Report, Governor Ueda’s post-meeting press conference, and the Summary of Opinions are expected to provide clues about future rate hikes and adjustments to JGB purchases.

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