Yesterday evening, the European Central Bank raised all three major interest rates by 75 basis points; and Fed Chairman Powell’s speech also consolidated expectations for a 75 basis point rate hike.
The U.S. dollar index rose and fell again, falling to the vicinity of the 109 mark again, and standing at 110 was only a flash in the pan.
Paper gold fluctuated down yesterday, falling to a minimum of 381 yuan, and rebounded again in the early morning. As of press release on Friday morning, ICBC’s paper gold price was at 384.1 yuan per gram.
On Thursday night, Fed Chairman Jerome Powell delivered another hawkish speech, cementing expectations for a 75 basis point rate hike at the upcoming policy meeting.
Powell said the Fed was “firmly committed” to fighting inflation, but said it still wanted to do so without the “very high societal costs” involved in fighting it earlier.
He also said the need to stick with it until the job is done, again boosting expectations for a 75 basis-point rate hike from the Fed this month.
At the same time, Chicago Fed President Evans said that reducing inflation is “the first job”, and for this reason, the Fed is “very likely” to raise interest rates by 75 basis points this month, a statement similar to other Fed officials.
For now, investors are still awaiting next week’s U.S. inflation report for August for fresh clues on whether the Fed will raise rates by 50 basis points, or 75 basis points at its next policy meeting on Sept. 20-21 .
Also last night, after the RBA and Canada raised interest rates by 75 basis points this week, the European Central Bank announced that it would announce an interest rate decision, announcing that the three major interest rates would be raised by 75 basis points, which was in line with market expectations and was the first significant rate hike since 1999. 75 basis points.
The ECB said it expects to raise interest rates further, with further hikes expected in the next few meetings to curb demand and guard against the risk of continued upward inflation expectations.
Reinvestment in the European Central Bank’s Emergency Pandemic Purchase Program (PEPP) will continue until at least the end of 2024, inflation will gradually moderate, and the future path of interest rates will depend on data.
European Central Bank President Christine Lagarde later said, “Policymakers unanimously agreed to raise rates by 75 basis points on Thursday, and we expect further hikes as inflation remains too high and is likely to remain at our level for an extended period of time. on the target