Tag: Monetary policy
The Central Bank raises the key interest rate
The Monetary Policy Committee of the Central Bank of Iceland decided to raise the bank’s interest rate by one percent. The bank’s main interest rate, i.e. the interest rate on seven-day term deposits, will increase from 6.5 percent to 6.5 percent. up to 7.5 percent The interest rate in Iceland has not been higher since […]
Inflation on the rise in Finland: a long battle to tame prices ahead, warns the chief economist
Although prices may not continue as quickly as in February, the continuation of inflationary pressures is a major economic risk. The high price of electricity, food and increased loan interest rates were the main factors of annual inflation. Food and non-alcoholic drinks prices rose by a record 16.3% compared to last year, while monthly inflation […]
Finland’s economy shrinks in two consecutive quarters: Expert analysis
According to the latest data from Statistics Finland, the country’s gross domestic product (GDP) shrank by 0.6% in the last quarter of 2022 compared to the previous quarter, which is significantly worse than previous estimates. Just two weeks ago, Statistics Finland predicted that GDP would shrink by 0.2 percent. Despite this, GDP for the whole […]
Reserve Bank renovation well overdue
There is no doubt that the Coalition-stacked Reserve Bank needs a deep clean-up, hopefully including an updated, more democratic selection process, writes Lachlan Newland. TREASURER JIM CHALMERS have promised reform from the Reserve Bank of Australia (RBA). This is hardly surprising as every current board member is a coalition appointee. Politicians often talk about interest […]
Base interest rates will increase by half a percentage point
It has just been announced that the monetary policy committee of the Central Bank of Iceland has decided to increase the key interest rate by 0.5 percentage point. Thus, they reached the level of 6.5%. In May 2021, they were 0.75 percent. This increase is in line with the forecasts of the bank’s analytics departments, […]
OP: Finland will sink into a mild recession in 2023
“We are looking at a couple of years of interminably slow development rather than a clearly defined recession and rapid recovery,” he said. press release on Tuesday. According to OP, the recession affects the economy widely and makes it difficult for exports, private consumption and investments. The value of exports grew at an almost unprecedented […]
Stabilizing inflation may require actions “that are not popular,” US Fed chairman says
Washington [US]Jan 11 (ANI): US Federal Reserve Chairman Jerome Powell has defended his ongoing policy rate hike, saying restoring price stability, especially when inflation is high, may require actions “that are not popular”. At its latest monetary policy meeting, the US central bank, the Federal Reserve, raised interest rates by 50 basis points (bps). The […]
German real estate market plummets report
A decade-long boom in deal-making has been slowed by a deteriorating economic environment, BNP Paribas says The real estate sector in Germany fell in the last three months of 2022 due to rising financing costs and to note inflation in Europe’s largest economy, a report published on Monday by BNP Paribas showed. Investment in the […]
The Bank of Finland reiterates its concern about household debt amid rising interest rates
With the European Central Bank (ECB) announcing that it plans to continue tightening monetary policy to curb inflation this year, interest rates could rise to close to four percent by summer. Marja NykänenThe vice-chairman of the board of the Bank of Finland stated to Helsingin Sanomat on Thursday that household debt servicing costs have risen […]
HS: Economists expect the employment situation to worsen in the coming months
However, the Finnish economy is widely expected to turn into recession at the beginning of next year, which creates uncertainty in the labor market as well. “It is quite inevitable that the cooling of the economic situation will start to affect the labor market little by little”, Jukka Appelqvist, chief economist of the chamber of […]
The rupee fell 10p to 82.709 against the dollar in early trade
Mumbai (Maharashtra) [India]December 21 (ANI): The rupee fell against the US dollar on Wednesday morning as the US currency strengthened against key rivals overseas. According to Investopedia, the rupee was trading at 82.709 against the dollar at 10.33 am. It slipped over 10p from yesterday’s close of 82.6. The dollar index was at 104.14 (up […]
Sweden is facing the worst economic downturn in the EU – Bloomberg
The nation’s real estate market has collapsed amid slowing consumption A sharp slump in Sweden’s real estate sector threatens to deepen a looming economic crisis in the Nordic region’s largest economy, Bloomberg reported on Monday. The store warned that the country’s real estate market, after almost twenty years of stable growth, is undergoing “a dramatic […]
Sweden is facing the worst economic downturn in the EU Bloomberg
The nation’s real estate market has collapsed amid slowing consumption A sharp slump in Sweden’s real estate sector threatens to deepen a looming economic crisis in the Nordic region’s largest economy, Bloomberg reported on Monday. The outlet warned that after nearly twenty years of steady growth, the country’s property market is undergoing “a dramatic change”. […]
US dollar rises ahead of CPI data, Fed meeting
NEW YORK, Dec. 12 (Xinhua) — The U.S. dollar strengthened in late trade Monday as market participants awaited a key U.S. inflation report and the Federal Reserve’s monetary policy meeting. The US consumer price index (CPI) for November is released on Tuesday. The Fed is expected to deliver another rate hike when it wraps up […]
The US dollar rises as traders await the Fed chairman’s speech
NEW YORK, Nov. 29 (Xinhua) — The U.S. dollar climbed in late trading Tuesday as market participants assessed the Federal Reserve’s monetary policy path. The dollar index, which measures the greenback against six major peers, rose 0.13 percent to 106.8220. In late New York trading, the euro was down to US$1.0331 from US$1.0342 in the […]
Rehn: A recession in the Eurozone would be a disadvantage for Finland rather than a collapse
“The rising cost of energy has also increased food prices. The increase in food prices affects all citizens, but especially those with low incomes, for whom the food bill eats up the lion’s share of the income, he said. quoted saying Helsingin Sanomat’s public hearing in the parliament’s trade committee. Eurostat has reported that consumer […]
Inflation in Finland accelerated to 8.3 percent in October
The average interest rates for both housing and consumer loans are higher than before, the former 67 percent and the latter 24 percent from the previous year. Kristiina Nieminensenior statistician from Statistics Finland, reminded that interest rates were expected to rise as a result of the reference rate hikes initiated by the European Central Bank […]
The Governor of the Bank of Finland warns of a serious economic disruption
Stagflation refers to slow economic growth and high unemployment as well as constantly rising consumer prices. In September, the ECB estimated that the euro area economy could contract by 0.9 percent in 2023 if Russia stops selling natural gas and oil transported by sea to Europe and Europe does not find alternative sources of supply. […]
Marin: Politicians must be able to discuss economic policy coordination
“The root cause of inflation is the high price of energy, so we need to focus on two things in particular. We need to rapidly increase energy production to solve this supply problem. And another thing we need to discuss and find solutions for is energy pricing,” he said quoted saying from STT. He considered […]
0.25 percentage point increase in interest rates
The Monetary Policy Committee of the Central Bank of Iceland decided to raise the bank’s interest rate by 0.25 percentage points. The bank’s main interest rate is therefore 5.75%. “You can see that interest rate hikes recently slowed the growth of general demand and lowered activity in the housing market. Inflation was measured in September […]
Saarikko denies Marini’s obvious criticism of the central bank as unfounded
the Treasury minister Annika Saarikko (Centre) on Monday denied the criticism leveled at the central bank as groundless, reports YLE. He felt that central banks would face even more criticism if they had decided not to take action to curb inflation, which is one of their core tasks. The ECB’s task is to keep inflation […]
July inflation in the euro area at 8.9 percent on an annual basis
BRUSSELS, Belgium: The European Union’s statistics office, Eurostat, confirmed that inflation in the euro zone hit a new record high of 8.9 percent year-on-year in July, with core measures, excluding the most volatile components, also rising. Consumer prices in the 19 eurozone countries rose 0.1 percent month-on-month in July, the highest since the launch of […]
Ilmarinen: Employment in Finland continued to grow amid concerns
“Of the industries we monitored, only construction showed a slight decrease in July. The number of employees has now grown continuously for about a year and a half. The positive development has been widely reflected throughout Finland. comment Miika AromaaIlmarinen’s team leader. However, the growth in the number of personnel slowed down from June, when […]
Roundup: Record inflation slows Sweden’s economy
STOCKHOLM, July 28 (Xinhua) — Already at its 30-year high, inflation continues to hit new records in Sweden as food, electricity and fuel prices have soared in recent months, partly due to the conflict in Ukraine and sanctions against Russia. Data recently published by Statistics Sweden showed that the country’s 12-month inflation reached 8.5 percent […]
Record inflation slows Sweden’s economy
© Provided by Xinhua The data in June showed that the prices of food, electricity and fuel were increased by 11.2 per cent, 39.8 per cent and 54.2 per cent respectively from the year before. Basic consumer goods such as meat, milk, cheese, eggs, coffee and bread contributed the most to inflation, with the price […]
The euro fell to a 20-year low against the US dollar
According to the ECB, the euro has fallen by more than nine percent against the US dollar since the beginning of this year. According to S&P Global, the industrial purchasing managers’ index (PMI), which measures the direction of economic development in the euro area, fell to 52.1 in June from 54.6 in May. “While the […]
Dramatic slowdown in Sweden’s economy: report
STOCKHOLM, June 21 (Xinhua) – Due to the soaring inflation, Sweden’s economic growth is expected to slow drastically this year and next year, according to a report released by the National Institute of Economic Research (NIER) on Tuesday. According to the government agency’s latest forecast, economic growth is expected to slow to 1.9 per cent […]
World Bank lowers global growth forecast for 2022 to 2.9 per cent, warns of risk of stagflation
According to the report, this increases the risk of stagflation, which could have detrimental consequences for both middle-income and low-income economies. According to the report, global economic growth is expected to slow from 5.7 per cent in 2021 to 2.9 per cent in 2022 and hover at around 1523-2024. Growth in advanced economies is projected […]
Nordea weakens Finland’s economic outlook
Nordea Bank forecasts that the Finnish economy will grow by two percentage points this year instead of three. The bank says its outlook is lower than previously forecast due to the geopolitical situation surrounding Russia’s war in Ukraine and China’s tight zero-Covid policy. Its outlook in January, nearly two months before the Russian invasion, predicted […]
As uncertainty persists, investors will withdraw EUR 100 million from funds registered in Finland
Investors raised a total of EUR 242 million from equity funds and EUR 313 million from short-term fixed income funds. New investments in hedge funds amounted to EUR 105 million, in long-term fixed income funds to EUR 301 million and in alternative funds to EUR 45 million. Last month was difficult, especially for fixed income […]
The research institute almost halves Finland’s economic forecast
The Finnish economy is both directly and indirectly adversely affected by Western sanctions and the general reluctance to cooperate with Russia. Sakari LähdemäkiDirector of Laboratory Forecasting. “Directly through the drying up of Russian trade and indirectly due to the deteriorating economic outlook across Europe.” “Finland’s economic growth is maintained by private consumption and investment. The […]
Rehn: Monetary policy is ineffective against energy-induced inflation
He estimates that Europe is currently trying to avoid repeating the mistakes it made after the last financial crisis. The ECB was then reacting to rising energy prices by raising its interest rates, unlike the US Federal Reserve. “It simply came to our notice then. And it also affected the duration of the debt crisis, […]
Rehn: Finland can bear the cost of sanctions because basic human values are under threat
“Russia is blatantly violating international agreements.” According to Rehn, the European Central Bank and the national monetary authorities, including the Bank of Finland, will implement without delay all sanctions imposed by the EU and national governments within its competence. Juha KilponenDirector of Monetary Policy and Research at the Bank of Finland, told me Helsingin Sanomat […]
The US dollar is rising against the strongest CPI growth since 1982
NEW YORK, FEBRUARY 10 (Xinhua) – The US dollar rose in late trading on Thursday due to higher-than-expected inflation. The dollar index, which measures the dollar against six major comparable competitors, rose 0.06 percent to 95.5530 in late trading. The US Consumer Price Index (CPI) for January 2022 showed 7.5 percent of growth on an […]
US dollar companies up on duvish comments from ECB officials
NEW YORK, FEBRUARY 8 (Xinhua) – The US dollar gained ground in late trading on Tuesday, thanks to pigeon comments from top officials from the European Central Bank (ECB). The dollar index, which measures the dollar against six major comparable competitors, rose 0.25 percent to 95.6400 during late trading. Any monetary policy adjustment will be […]
Three economists: This is how the Swedish economy will be after the pandemic
What will be the consequences of rising inflation? And does the division of roles between monetary policy and fiscal policy need to change? Listen to Laura Hartman, Chief Economist LO, Annika Winsth, Chief Economist Nordea and John Hassler, Professor of Economics at Stockholm University. Also in Saturday’s interview: Ekot’s financial commentator Kristian Åström.
The Bank of Finland downgraded the economic outlook due to Covid
The Bank of Finland has revised its economic forecast for 2021-2024 and estimates that growth will slow in the coming years. According to the central bank, Finland’s gross domestic product will be 3.5 per cent this year, before falling to 2.6 per cent next year and 1.5 and 1.3 per cent over the next two […]
Sweden reports the highest inflation in 28 years
STOCKHOLM, December 14 (Xinhua) – Sweden’s inflation rose to 3.6 percent in November, up from 3.1 percent in October. This is the country’s highest inflation since 1993, Statistics Sweden states in a statement on Tuesday. Rising energy prices contributed to the highest inflation rate since December 1993, says Mikael Nordin, statistician at Statistics Sweden. Inflation […]
Central Bank raises key interest rate to 2%
The Monetary Policy Committee (MPC) of the Central Bank of Iceland decided to raise the bank’s interest rates by 0.5 percentage point. The bank’s base interest rate will therefore be 2%. This is the fourth increase in the bank’s interest rates since May, pointing to a change of direction as economic forecasts improve. The main […]
Nordea raises Finland’s growth forecast for this year to 3.5 per cent
The exceptionally rapid recovery from the weak situation has led to a situation where the main obstacles to growth are no longer muted demand or the constraints imposed by the coronavirus pandemic, but the availability of resources. For example, the labor market has shifted rapidly from large-scale layoffs to labor shortages, while manufacturing bottlenecks have […]
The interest rate goes up
The Monetary Policy Committee of the Central Bank of Iceland decided to raise the bank’s interest rate by 0.25 percentage points. The main interest rate of Seðlabanki, the interest rate on seven-day deposits, will therefore be 1.25%, we read in the announcement on the institution’s website. The economic outlook improved from the bank’s previous forecast. […]
The Central Bank is raising the interest rate
The Monetary Policy Committee of the Central Bank of Iceland decided to raise the bank’s interest rate by 0.25 percentage points. The main interest rate of the bank, i.e. the interest on seven-day term deposits, will therefore be 1 percent. There have been some tensions over the bank’s interest rate decision. Consequently, the Department of […]
Inflation and rising interest rates
According to Landsbankinn’s economic forecast for 2021-2023, inflation will peak in the second quarter of 2021 and be well above the target for the remainder of this year, but will hit this target in the middle of next year. Inflation is expected to average 4% this year, 2.5% next year and 2.6% in 2023. The […]
FACTS: Pandemic without death in Greenland
Up to and including 5 April, 31 cases of infection and no deaths have been registered. Here are some other facts about the island: * POPULATION: On 1 January 2021, 56,421 people lived in Greenland. The average age is 35.4 years against 41.1 in Denmark. In 2020, 16,780 people born in Greenland were resident in […]
Etla: Work-based migration should be encouraged
A new approach to economic policy is needed to accelerate Finland’s slowed economic growth, according to the Finnish Economic Research Institute (Etla). Prior to the mid-term review of the Board, a two-day round of negotiations to assess the Board’s activities to date and its future plans, Etla recommends e.g. Increase investment incentives and reform social […]
FACTS: Pandemic without death in Greenland
Up to and including 30 March, 31 cases of infection and no deaths have been registered. Here are some other facts about the island: * POPULATION: On 1 January 2021, 56,421 people lived in Greenland. The average age is 35.4 years against 41.1 in Denmark. In 2020, 16,780 people born in Greenland were resident in […]
Taking determined action to develop the EU will benefit the Member States
In recent years, some EU Member States have acted in a way that has violated the rule of law. The adoption of these measures will weaken the foundations of the Union. Finland has strongly said no to the neglect of common values and promoted the rule of law both during the EU Presidency in 2019 […]
