CME group predict rate will raise by 0.25% on The Fed meeting
This week, the Fed is likely to raise rates by 0.25% for the 11th time in 15 months. The 0.25% rate hike would raise the fed funds rate to 5.25%-5.50%, a 22-year high. The Fed’s two-day policy meeting begins Tuesday, with its monetary policy decision expected on Wednesday at 2:00 p.m. ET. On Wednesday, the…
The British government will investigate bank account closures.
Britain’s finance minister, Andrew Griffith, will meet with major lenders to investigate concerns that banks have cancelled customer accounts over political views. The letter urged banks and fintechs to take action to ensure customers don’t lose access to services over their views. The government has proposed measures requiring banks to provide more notice and explanation…
US FDIC urges banks to correct “inaccurate” claims before new fee
The FDIC has ordered banks to restate financial statements that incorrectly decreased uninsured deposits before proposing a specific fee based on deposit size. The warning and modifications came after banks complained about an FDIC fee aimed at major corporations to recover their losses from Silicon Valley Bank and others. Since 2022, banks have reduced their…
UBS settles Credit Suisse’s Archegos failures with a $388 million payment
UBS has been ordered by British and U.S. regulators to pay $388 million for Credit Suisse’s transactions with Archegos Capital Management. The bank plans to improve operational and risk management after acquiring Credit Suisse. The U.S. Federal Reserve will pay $269 million, while the Bank of England will pay 87 million pounds. UBS is expected…
Before the Fed and ECB raise rates, oil prices go down.
Oil prices fell on Monday due to traders expecting additional rate hike hints from US and European central banks. Tightening supply and Chinese stimulus support Brent at $80 a barrel. Brent crude futures fell 31 cents to $80.76 and WTI crude fell 33 cents to $76.74. OPEC+ cutbacks constrain supply, and the benchmarks increased 1.5%…
Pressure on the rouble has increased
The rouble firmed against the dollar and euro after a higher-than-expected interest rate hike, high oil prices, and exporters’ month-end tax payments. The rouble has been under pressure since Wagner’s failed rebellion in June, and Russian infrastructure attacks have impacted risk appetite. The Bank of Russia raised its key interest rate to 8.5%, but the…
Euro business drop much more than expected in July
Euro zone business activity dipped more than predicted in July due to falling demand in the major services industry and industrial output at the fastest pace since COVID-19. The flash Composite Purchasing Managers’ Index (PMI) fell to 48.9, below the 50 line separating expansion from contraction and below all predictions. Manufacturing remains the euro zone’s…
Singapore core inflation grew 4.2%
Singapore’s consumer price indicator grew 4.2% in June, meeting economists’ predictions. The Monetary Authority of Singapore (MAS) and trade ministry reported falling food and energy prices, lowering inflation. Core inflation, including private road transport and hotel prices, climbed 4.2% year-on-year, while headline inflation rose 4.5%. The government predicted lower core prices in the second half…