The Covid-19 pandemic has impacted all the economies, big or small, across the globe. Central banks everywhere have been proactively dealing with the situation and have successfully pushed a large amount of liquidity to the banks through various means. However, due to widespread uncertainty caused by the pandemic, banks are reluctant to lend, and consumers are hesitant to avail credit. This article highlights the adverse impact that surplus liquidity may have on the banks and economies if adequate demand is not created.
Lumber prices were an unlikely beneficiary of COVID-19 stay-at-home orders; people stuck at home became do-it-yourself carpenters, creating a huge demand for a limited supply. But prices have tapered off in the last couple of months, and many are wondering if the frenzy is over and lumber prices will settle down to pre-pandemic levels.
Prices have been on an upward trajectory in 2021, with oil leading the pack. Factors such as increased demand facing reduced supply led to crude prices jumping nearly 45 percent during the first half of the year. Will it hit the milestone of $100 per barrel soon? Some experts predict it will, while others hold more reserved expectations.
The pandemic threw cold water on the inflation rate in the US, but the price level is beginning to heat up. The country is bursting at the seams with pent-up consumer demand, but much will depend on the rate-setting actions taken by the Federal Reserve. How hot will the central bank let it get before raising rates to turn down the heat?
Spring is in the air, and so is price inflation in the UK, which saw its inflation rate rise sharply in April. Leading the way were prices for energy, utilities and clothing, primarily due to the lifting of COVID-related restrictions. As the rate closes in on the BoC’s target of 2 percent, will this upward trend be permanent or transitory?
Gains in Europe’s annual inflation rates during the first month of 2021, raising the euro area’s rate to 0.9 percent and the European Union’s to 1.2 percent—due primarily to price increases for industrial goods and services, are encouraging and bring promise for further increases. However, not all EU countries experienced the same success, with Greece at the low end (-2.4 percent) and Poland at the high end (3.6 percent).
The Digital Age has transformed every corner of the financial world, including investments. Once the exclusive domain of the wealthy, investing is now open to anyone, thanks to micro-investing platforms. Equities have demonstrated comparatively strong returns in our low-interest-rate environment and are well worth the attention of even those with only some change to spare. What are the most promising avenues available to the small investor keen on breaking in?
The Bank of England (BoE) announced on Thursday, September 17, that the Monetary Policy Committee (MPC) had voted unanimously to leave its benchmark bank rate at 0.1 percent whilst also maintaining the target for the total stock of asset purchases under its quantitative-easing (QE) programme at £745 billion.
During its policy meeting on Thursday, September 10, the European Central Bank (ECB) decided to keep its main refinancing benchmark rate unchanged at 0 percent, along with leaving its rates on the marginal lending facility and deposit facility the same at 0.25 percent and -0.50 percent, respectively.
At its most recent monetary-policy meeting in late July, the Federal Open Market Committee (FOMC) discussed implementing a number of monetary-policy tools to allay concerns regarding the economic outlook for the United States. And while the FOMC had already taken numerous emergency measures