Economic Growth
China’s Economy Surges with Q4 GDP Growth of 5.4%
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MONETARY POLICY
Economic News
Turkey’s Inflation Soars to 68.5%
Turkey’s inflation rate surged to 68.5% in March, marking a slight increase from February’s 67.1%, as reported by the Turkish Statistical Institute. The monthly consumer price jump of 3.16% was notably influenced by sectors such […]
Aggregate Demand and Supply
Japan Bids Farewell to Negative Interest Rates
In a significant policy shift, the Bank of Japan (BOJ) has ended its eight-year experiment with negative interest rates, initiating its first rate hike in 17 years. This move adjusts the short-term policy rate from […]
Consumer and Business Behaviour
Bank of England Holds Firm on the Interest Rate
The Bank of England has signaled a tough road ahead for the UK, maintaining interest rates at 5.25% amidst a stagnating economy and persistent inflation. This decision comes at a critical juncture as the country […]
Aggregate Demand and Supply
Bank of England’s Interest Rate Riddle: Balancing Inflation and Growth!
The Bank of England’s Governor, Andrew Bailey, recently made headlines by suggesting that interest rates are nearing their peak, although they might still rise a bit more. He shared with MPs that the Bank is […]
Aggregate Demand and Supply
U.S. Retail Sales Surprise with July Jump!
In July, the U.S. retail sales report showed a surprising increase, despite the inflationary pressures and a series of Federal Reserve interest rate hikes. The Commerce Department reported a seasonally adjusted increase of 0.7% for […]
Aggregate Demand and Supply
China’s Central Bank Cuts Reserve Ratio to Boost Economic Recovery
In a move to bolster its economic recovery, China’s central bank, the People’s Bank of China (PBOC), announced on Friday that it would reduce the reserve requirement ratio (RRR) for all banks, barring those already […]
Aggregate Demand and Supply
Inflation Takes a Breather: US Sees Lowest Annual Rate in Over Two Years
The inflation rate in the United States receded in May to its lowest annual rate in over two years, as per a report from the Labor Department. The consumer price index (CPI), a key measure […]
Consumer and Business Behaviour
Argentina’s Central Bank Hikes Interest Rate to 97%!
In a bold move to combat climbing inflation, Argentina’s Central Bank has escalated its key interest rate by a steep six points, hitting a staggering 97%. This decisive action comes in response to inflation soaring […]
Aggregate Demand and Supply
Economic News
Nestle planning another price increase
Nestle, one of the world’s largest food and beverage companies, is planning to increase prices again this year as they grapple with food inflation and the surging cost of ingredients. The Swiss conglomerate, famous all […]
Economic News
Central Bank of Sri-Lanka raises the interest rate to curb inflation
As inflation spikes throughout the Sri-Lankan economy, the central bank has responded by increasing the interest rate from 5.5% to 6.5%. This tightening of monetary policy follows three consecutive months of double-digit inflation, with the […]
Aggregate Demand and Supply
Monetary easing to free up $188 billion for Chinese banks
The People’s Bank of China, China’s central bank, announced this week that they would reduce the current reserve requirement ratio (RRR) to just over 8.4%. A reduction in RRR will allow banks to hold less […]
Aggregate Demand and Supply
South Africa: an economy in lockdown is an economy in freefall
The economic impact of Covid-19 has been devastating and wide-reaching. One country which is suffering significantly is South Africa, where going into lockdown has stifled almost all economic activity. As South Africa, the second largest […]
Aggregate Demand and Supply
Deflation in Canada: why economists will tell you that falling prices is not something to be happy about
The inflation rate in Canada entered negative territory in April, as year-on-year inflation was measured at -0.2%. This essentially means that the average price level in Canada was 0.2% less in April this year, than […]
Aggregate Demand and Supply
UK government to step in and pay people’s wages
In yet another unbelievable day of economic policy in action, the chancellor of the exchequer, Rishi Sunak, announced yesterday the latest measures to protect people’s income, keep businesses alive, and encourage spending in the economy. […]
Aggregate Demand and Supply
Interest rate in the UK has been cut to lowest in history – what a time to be studying economics!
For the second time in a week, the Bank of England has cut interest rates in an attempt to rescue the UK economy from the jaws of a coronavirus induced crash. In an unprecedented move, […]
Aggregate Demand and Supply
Now this is monetary policy: US Federal Reserve is throwing everything it’s got at the coronavirus
In an unprecedented move today, the US federal reserve, which controls and coordinates American monetary policy, has announced a cocktail of measures to combat the economic fallout from the coronavirus which utilises almost every weapon […]
Aggregate Demand and Supply
Now is the time to borrow: Bank of England slashes interest rates to 0.25%
In an attempt to combat the economic fallout caused by the outbreak of the coronavirus, the Bank of England has taken the extreme measure of cutting interest rates from 0.75% to 0.25%. Monetary policy of […]
Aggregate Demand and Supply
Corona Credit Crunch for many Chinese businesses
With millions of people in self-imposed quarantine across China and severe travel restrictions, small and medium sized businesses could be on the verge of collapse. Since the outbreak of the deadly coronavirus in January, businesses […]
Economic Growth
UK interest rate looks set for a reduction
In the UK, interest rates are set by the Monetary Policy Committee (MPC), a group of nine central bankers who meet eight times a year to decide on any changes to the official interest rate. […]