Browsing: interest rates

Official data revealed that the annual urban headline inflation rate decreased to 14.5% in August from 14.9% in July. Monthly urban inflation registered at 0.1% in August, showing no change from July. Conversely, core inflation moved upward, rising to 14.9% year on year from 14.7%. Monthly core inflation reached 0.3%.

As global commodity markets absorbed the impact of a quarter-point increase in interest rates by the U.S. Federal Reserve, bullion encountered renewed downward pressure across international trading desks. Spot gold fell by 1 percent to $4,249 per ounce, reaching multi-session lows amid rising sovereign yields and tighter monetary policies. The rise in interest rates has made holding physical gold less attractive, prompting institutional investors to shift their portfolios towards fixed-income investments.

On Monday, Japan’s Nikkei 225 experienced a nearly 2% decrease during early trading as investor sentiment was influenced by mounting expectations of higher interest rates. The index declined 1.97% to 65,096.63 before further falling to an intraday low of 64,832.10. The initial decline was primarily driven by selling in technology and other rate-sensitive sectors in the morning hours. Meanwhile, the broader Topix index also declined early, dropping 0.84% to 4,111.71, but later recovered within the session.

Egypt’s central bank keeps its policy rate corridor at 19%-20% after its August meeting. Official figures show that annual urban inflation increased to 14.9% in July from 14.3% in June. Over the same period, core inflation, as calculated by the CBE, rose from 14.3% to 14.7%. In July, both headline and core inflation registered no monthly change. The Central Bank of Egypt noted that adverse base effects contributed to the higher yearly readings. The urban consumer price index for Egypt is compiled by the Central Agency for Public Mobilization and Statistics. This August decision represents the fourth time in a row that rates have been held since meetings in April, May, and July. The last change in policy rates occurred on February 12, when the CBE reduced key rates by 100 basis points, bringing the overnight deposit and lending rates to their current levels of 19% and 20%. The main operation and discount rates also fell to 19.5%. Since that reduction, the Monetary Policy Committee has consistently maintained the full rate structure without further adjustments. Inflation climbs annually while monthly figures stay stable According to the bank, real economic activity continued to slow during the second quarter, based on its latest assessments. This follows a 5% growth in real gross domestic product in the first quarter of 2026. The CBE anticipates an average real GDP growth rate of about 5% for the 2025-202

The UK economy continues to avoid recession, although new forecasts indicate increasing pressure from global energy disruptions. EY increased its growth projection for 2026 to 0.9% from 0.8% in May and maintained its 2027 baseline at 1.2%. This forecast assumes the Strait of Hormuz will reopen by September, resulting in reduced tanker traffic. EY’s downside scenario estimates 0.5% growth this year and a 0.2% contraction in 2027.

The European Central Bank keeps interest rates precisely steady this July to evaluate regional inflation and broader energy risks. The post European Central Bank keeps interest rates at current levels appeared first on Arabian Observer: Observe more. Understand Arabia..

Gold prices recovered from a two-week low after a 3% selloff linked to rising oil, inflation pressure and stronger rate hike bets.

Gold extended losses after a weak quarter, with dollar strength and U.S. Treasury yields weighing on demand for non-yielding bullion.

China’s top officials pledged stronger tech financing, more balanced trade and capital market reforms, outlining steps on IPO rules, imports and stability.

Bank of Korea held rates at 2.5% and launched dot plot guidance as it lifted 2026 growth forecast and flagged housing, debt and won risks.