Ghost of Truth on Nostr: Central Banks Tread Carefully as Commodity Markets Signal Trouble China's central ...
Central Banks Tread Carefully as Commodity Markets Signal Trouble
China's central bank unexpectedly held interest rates steady, bucking predictions of a cut following the Fed's move. The People's Bank of China kept its one-year and five-year Loan Prime Rates at 3.35% and 3.85%, despite August's economic slowdown.
Japan's central bank also maintained rates at 0.25%, though future hikes seem likely as inflation hit 3% in August, well above the 2% target.
Adding to the complexity, commodity markets are showing signs of potential cost-push inflation. Gold prices are on the rise, often viewed as a harbinger of monetary debasement.
These developments highlight the tightrope central banks must walk: managing debt, fighting inflation, and supporting (keynesian pseudo) growth amid looming commodity pressures.
#CentralBanks #Inflation #CommodityMarkets #GoldPrice #MonetaryPolicy
China's central bank unexpectedly held interest rates steady, bucking predictions of a cut following the Fed's move. The People's Bank of China kept its one-year and five-year Loan Prime Rates at 3.35% and 3.85%, despite August's economic slowdown.
Japan's central bank also maintained rates at 0.25%, though future hikes seem likely as inflation hit 3% in August, well above the 2% target.
Adding to the complexity, commodity markets are showing signs of potential cost-push inflation. Gold prices are on the rise, often viewed as a harbinger of monetary debasement.
These developments highlight the tightrope central banks must walk: managing debt, fighting inflation, and supporting (keynesian pseudo) growth amid looming commodity pressures.
#CentralBanks #Inflation #CommodityMarkets #GoldPrice #MonetaryPolicy