* Regular wage growth +3.8% versus Reuters poll +4.0% * Increase is weakest since late 2020. * Bank of England watching inflation heat in jobs market. * But BoE now also focused on risks from war in Middle East. * Jobless rate holds at 5.2% By William Schomberg and David Milliken.
Sterling was steady on Thursday as markets focused on the Bank of England's interest rate decision later in the day, with investors looking out for any clues from policymakers about the impact of the Iran war. Data published on Thursday meanwhile showed that British wages, excluding bonuses, rose at their slowest pace since late 2020 in the three months to January.
The Swiss National Bank made the following statement after its policy review on Thursday: The Swiss National Bank is leaving the SNB policy rate unchanged at 0%. Banks' sight deposits held at the SNB will be remunerated at the SNB policy rate up to a certain threshold. Global economic growth was solid in the fourth quarter.
Short-dated U.S. Treasury yields hit their highest level since last August on Thursday, after the U.S. Federal Reserve flagged the risk of a pick-up in inflation, prompting investors to begin to price in the possibility of no more rate cuts this year.
The Swiss National Bank kept its policy rate on hold on Thursday in the face of a surge in the value of the Swiss franc driven by the Iran war, which also led to a spike in global oil prices, blurring the inflation outlook. The SNB maintained its policy rate at 0%, the lowest among major central banks, as expected by a wide majority of analysts polled by Reuters.
Top central banks on Thursday said they stood ready to tackle any surge in inflation with tighter policy as the latest escalation in the Iran war put the Middle East's vital energy infrastructure in the line of fire, pushing fuel prices higher.
* FOMC maintains policy rate in 3.50%-3.75% range as expected. * Fed funds futures imply U.S. central bank to stand pat all year. * BOJ votes 8-1 to hold interest rates. By Sophie Kiderlin and Gregor Stuart Hunter.
Euro zone government bond yields rose on Thursday ahead of a European Central Bank rate decision, as global bonds and stocks sold off in light of another jump in the oil price and after the Federal Reserve forecast higher inflation. An Israeli attack on Iran's largest natural gas field on Wednesday pushed the crude price above $110 a barrel, sending fresh shockwaves through markets.
Copper slid to its lowest point in three months on Thursday in a cross-complex selloff of base metals, as oil prices spiked following Iranian attacks in the Middle East, stoking inflation fears and stronger dollar amid weakening rate-cut expectation.
* ECB holds its key rate at 2% * Policymakers expect rate hike discussion in April. * Move seen as more likely in June. * Lagarde says central bank well positioned. By Francesco Canepa and Balazs Koranyi.
Morgan Stanley (MS) on Thursday joined Goldman Sachs and Barclays in pushing back its forecast for the U.S. Federal Reserve's next interest rate cut to September from June after the central bank flagged inflationary risks amid the Middle East conflict.
* Fed and BoC keep interest rates on hold amid inflation concerns. * Trump considers deploying troops to Middle East. * Oil rises over $110 a barrel after Iran strikes Middle East energy facilities. By Noel John. Gold prices fell to a more-than-one-month low on Thursday, weighed down by a firm dollar and a hawkish Federal Reserve, which limited hopes for near-term interest rate cuts.
The Bank of Japan kept interest rates steady on Thursday but warned that rising oil costs from the Middle East conflict could fuel underlying inflation, signalling caution over mounting price pressures.
The Bank of Japan kept interest rates steady on Thursday but warned that rising oil costs from the Middle East conflict could fuel underlying inflation, signalling caution over mounting price pressures.
S&P: * S&P: HONDA MOTOR DOWNGRADED TO 'BBB+' ON EARNINGS DOWNTURN; OUTLOOK STABLE. * S&P: HONDA MOTOR'S PERFORMANCE WILL DETERIORATE SIGNIFICANTLY IN NEXT COUPLE OF YEARS ON EV-RELATED LOSSES AND TAKE TIME TO RECOVER.
The following are the top stories on the New York Times business pages. - Jerome Powell, the chair of the Federal Reserve who has faced withering pressure from U.S. President Trump just months before his term as chair ends, said on Wednesday that he would continue to lead the central bank until his replacement was confirmed by the Senate.
A look at the day ahead in European and global markets from Ankur Banerjee. As the U.S. and Israel's war with Iran intensifies after major attacks on energy infrastructure, central bank meetings have become the stage for policymakers to unite in flagging the prospect of accelerating inflation due to soaring energy prices.
A look at the day ahead in European and global markets from Ankur Banerjee As the U.S. and Israel's war with Iran intensifies after major attacks on energy infrastructure, central bank meetings have become the stage for policymakers to unite in flagging the prospect of accelerating inflation due to soaring energy prices.
Investors are facing a cloudier view of U.S. monetary policy in the coming months, with a war in the Middle East muddying the outlook for a Federal Reserve that already was grappling with above-target inflation and an uneven labor market.
* Fed and BoC keep interest rates on hold amid inflation concerns. * Trump considers deploying troops to Middle East. * Oil rises over $110 a barrel after Iran strikes Middle East energy facilities. * Gold fell 3.7% in the previous session. By Noel John.
China is expected to keep benchmark lending rates steady for the 10th consecutive month in March on Friday, a Reuters survey showed, as rising global oil prices driven by heightened Middle East tensions add uncertainty to the inflation outlook.
* FOMC maintains policy rate in 3.50%-3.75% range as expected. * Fed funds futures imply U.S. central bank to stand pat all year. * BOJ votes 8-1 to hold interest rates; Governor Ueda to speak later. By Gregor Stuart Hunter.
Copper slid to its lowest in more than two months on Thursday, as oil prices spiked following Iranian attacks in the Middle East, stoking inflation fears and reinforcing a hawkish U.S. central bank outlook, while rising inventories added pressure.
Japan's lower house of parliament approved on Thursday Prime Minister Sanae Takaichi's choice of two like-minded monetary doves to join the central bank board, a move that could influence its decision on the timing and pace of further interest rate hikes.
The Bank of Japan kept interest rates steady on Thursday and maintained its assessment the economy was recovering moderately, even as an escalating Middle East conflict clouded the outlook. As widely expected, the central bank left unchanged its short-term policy rate at 0.75% in a two-day meeting that ended on Thursday.
Japanese stocks and bonds fell on Thursday and the yen remained fragile as investors weighed the economic impact of the prolonged Middle East conflict.
* Board keeps policy rate unchanged at 0.75% as expected. * Two board members see price goal met sooner than expected. * Board focus somewhat tilted to upside price risk, Ueda says. * Ueda says war impact comes on top of wage gains, solid growth. * BOJ to disclose by summer new inflation indicator. By Leika Kihara and Makiko Yamazaki.
The Bank of Japan held interest rates steady on Thursday but maintained its bias for tighter monetary policy, warning that surging oil prices driven by the Middle East conflict could exacerbate inflationary pressures.
The euro and the Japanese yen advanced against the U.S. dollar on Thursday as key central banks kept interest rates steady amid concerns about inflation from rising oil prices in the midst of the Middle East conflict. The European Central Bank left interest rates unchanged as expected but signalled it was closely watching growth and inflation risks from surging oil prices.
Japan's Nikkei fell on Thursday as investors weighed the impact of the Middle East conflict on corporate growth, while markets also focused on how the Bank of Japan will respond to the Iran war-linked oil shock in its policy decision later in the day.
* US, Canada, Japan, BoE, ECB keep rates on hold. * Central bankers on alert for inflation surge. * Attacks on energy infrastructure mark new phase. * Some analysts speak of rising "stagflation" risk. By William Schomberg and Balazs Koranyi.
Top central banks said on Thursday they stood ready to tackle any surge in inflation with tighter policy, as an escalation in the Iran war put the Middle East's vital energy infrastructure in the line of fire and pushed fuel prices higher.
Major U.S. indexes closed lower, with the Dow Jones Industrial Average dropping 1.6% to 46,225.15, the S&P 500 slipping 1.36% to 6,624.70, and the Nasdaq falling 1.46% to 22,152.42. The Federal Reserve maintained interest rates at 3.50%?3.75% for the third consecutive meeting.
* FOMC maintains policy rate in 3.50%-3.75% range as expected. * Fed funds futures imply U.S. central bank to stand pat all year. * BOJ decision expected 0330-0430 GMT, Governor Ueda to speak at 0630 GMT. By Gregor Stuart Hunter.
Global stocks slumped on Thursday as oil prices spiked after the latest escalation in the U.S. and Israel's war with Iran, while a host of major central banks left interest rates unchanged as they attempt to assess rising price pressure.
Japan's Nikkei share average slipped more than 2% on Thursday, following sharp losses on Wall Street after the U.S. Federal Reserve held interest rates steady, while domestic investors awaited the Bank of Japan's decision due later in the day.
Japanese government bonds fell on Thursday as investors awaited a decision by the central bank and signals for how policymakers will address inflation pressures from surging oil prices. The benchmark 10-year JGB yield rose 3.5 basis points to 2.250%. The five-year yield rose 2 bps to 1.665%. Yields move inversely to bond prices.
Ratings agency Moody's on Wednesday upgraded Bolivia's issuer and senior unsecured ratings to Caa3 from Ca, citing reduced near-term default risks following a political leadership shift in late 2025. Moody's also lifted Bolivia's outlook to positive from stable.
The U.S. Federal Reserve and Bank of Canada both struck hawkish tones on Wednesday in the face of surging energy prices arising from the Iran war, as a heady week of global central bank meetings kicked into full swing.
* Fed and BoC keep interest rates on hold amid inflation concerns. * BoC Governor Macklem warns of persistent inflation if energy prices remain high. * Powell highlights uncertainty over economic effects of higher oil prices. * Australian central bank hiked rates this week to contain inflation. * BOJ, ECB, BoE rate decisions to follow on Thursday. By Promit Mukherjee and Howard Schneider.
* ECB seen holding its key rate at 2% * Energy shock puts hikes back on table. * Lagarde to signal vigilance amid uncertainty. By Francesco Canepa and Balazs Koranyi. The European Central Bank is all but certain to keep interest rates on hold at 2% on Thursday but will make clear it stands ready to raise them if the Iran war fuels a lasting surge in euro zone inflation.
Federal Reserve Chair Jerome Powell on Wednesday described significant challenges in bringing inflation down, from persistent tariff-driven price hikes to Iran war-driven energy price hikes that the U.S. central bank may not be able to "look through" as a transitory shock.
* Middle East conflict cited as key source of uncertainty. * Central bank cuts rates but raises inflation projections. * Policymakers avoid guidance for upcoming meetings. By Marcela Ayres.
The Brazilian central bank will hold a spot dollar auction of up to $1 billion on March 19, and a simultaneous reverse foreign exchange swap auction, it said in separate statements on Wednesday. Both deals start at 9:30 local time, the central bank said. A reverse FX swap, which in this case involves up to 20,000 contracts, is equivalent to buying U.S. dollars in the futures market.
US equity indexes fell on Wednesday as market expectations for interest rate cuts this year slumped following a meeting of the Federal Reserve, and producer prices rose more than forecast in February.
Brazil's central bank cut interest rates by 25 basis points on Wednesday, in line with market expectations that shifted toward a modest start to monetary easing after an oil shock from the U.S.-Israel war against Iran fueled global inflation concerns.
Foreign holdings of U.S. Treasuries rose in January, data from the Treasury Department showed on Wednesday, recovering from a decline in December as investors returned to the market amid generally elevated yields and shifting expectations for Federal Reserve policy. Holdings of U.S. Treasuries grew to $9.305 trillion in January from $9.271 trillion in the previous month.
Wall Street sank and Treasury yields leaped on Wednesday as traders interpreted a spike in oil, hot U.S. producer prices, and underlying signals from the Federal Reserve - even as the central bank stood pat on policy - as signs that interest rates will not be cut again this year.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date