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Total assets of Saudi financial companies grow 26% to $17.8 billion in 2021 (SAMA)

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Macro Snapshot — ECB hikes rates in fight against inflation; Japanese exports in June increase by 19.4%

CAIRO: The European Central Bank raised interest rates by 50 basis points in an attempt to fight inflation, while Ukraine kept its 11-year high policy rate unchanged.

Japan’s June exports rose 19.4% year-on-year, while the UK’s budget deficit widened due to soaring prices.

ECB raises rates by 50 basis points to fight inflation

The ECB raised interest rates more than expected on Thursday, confirming that concerns about runaway inflation outweigh economic growth considerations for now.

The ECB raised its benchmark deposit rate by 50 basis points to 0%, beating its own earlier forecast of a 25 basis point move as it joined global peers in raising borrowing costs. It was the first rate hike by the eurozone central bank in 11 years.

Ukraine keeps policy rate unchanged, raises inflation forecast

Ukraine’s central bank on Thursday kept its main interest rate unchanged at 25%, its highest level in seven years, and raised its inflation forecast for 2022 to over 30%.

Devastated by the war with Russia, Ukraine’s economy fell around 40% year-on-year in the second quarter of this year, the central bank said, opening up the possibility of keeping the key rate at 25% until the second quarter 2024.

Japan’s June exports rise 19.4% year-on-year

Japan’s exports rose 19.4% in June from a year earlier, data from the Ministry of Finance (MOF) showed on Thursday.

That compares with a 17.5% increase expected by economists in a Reuters poll.

June imports jumped 46.1% year-on-year, against a median estimate of a 45.7% increase.

The trade balance came in at a deficit of 1.3838 trillion yen ($10.00 billion), against a median estimate of a deficit of 1.510 trillion yen.

Soaring inflation pushes UK budget deficit up

A spike in debt costs – pushed by inflation soaring to twice the previous monthly peak – added to the UK’s budget deficit in June, which was its highest since April 2021, the data shows. released Thursday.

The Office for National Statistics said net borrowing by the public sector, excluding public banks, rose to £22.879 billion ($27.4 billion) last month from £12.560 billion in may.

Inflation in Sri Lanka hit 59% year-on-year in June

Sri Lanka’s headline inflation rate hit 59% in June, according to data from the country’s statistics department released on Thursday.

The country’s National Consumer Price Index LKNCPI=ECI rose 58.9 percent year-on-year in June, from a 45.3 percent rise in May.

(Contributed by Reuters)