ABC New (December 26)
Due to unexpectedly high migration, “fears that Australia would enter a technical recession during 2023 didn’t eventuate.” Still, “for many, life in 2023 certainly felt recession-like as Australians faced more interest rate hikes, a rising tax bill and a still-increasing cost of living that again outpaced wage growth.”
Tags: 2023, Australia, Australians, Cost of living, Fears, Interest, Migration, Outpaced, Rate hikes, Tax bill, Technical recession, Wage growth
Reuters (December 8)
“Since war broke out in Ukraine and the U.S. Federal Reserve began a rapid cycle of raising borrowing costs early last year, it has been exceedingly difficult in most parts of the world for companies to get initial public offerings off the ground. Many are getting ready in case an opportunity arises,” but conditions remain unpromising. So far in 2023, “new listings have raised just $114 billion,” which is “on pace to be the lowest amount since 2008” and marks a “dramatic fall from the $571 billion peak achieved just two years ago.”
Tags: $114 billion, $571 billion, 2008, 2023, Dramatic fall, Fed, IPOs, Lowest, New listings, Peak, Rate hikes, U.S., Ukraine, Unpromising, War
Financial Times (July 29)
“Inflation is falling for a number of reasons “beyond the Fed’s control,” like an easing of the worst impacts from “the pandemic and the war in Ukraine.” But the Fed’s rate hikes have effectively “reduced demand for credit.” The results can be seen in mortgage debt and car loans. “Overall, growth in non-revolving credit—the loans you take out just once, like a mortgage—is now just below zero.” There’s one snag on the revolving credit side, where credit growth is still “coming from credit cards.”
Tags: Car loans, Credit, Credit cards, Demand, Falling, Fed, Inflation, Mortgage debt, Non-revolving, Pandemic, Rate hikes, Revolving, Ukraine, War
Bloomberg (May 12)
“The euro short-term rate, or ESTR, is currently 10.5 basis points below the central bank’s deposit rate, which is at its highest in 15 years. That’s close to the biggest gap on record…. It’s a sign the ECB’s aggressive rate hikes aren’t rippling out to banks and the economy, making it much harder for the central bank to meet its 2% inflation target.”
Tags: Aggressive, Banks, Deposit rate, ECB, Economy, ESTR, euro, Gap, Inflation target, Rate hikes, Record, Rippling out
