Charting the global economy: Top central banks differ on rates
interest rates this week as a long-awaited, but potentially short-lived, divergence in monetary policies deepens.
The Bank of Japan kicked off the action on Wednesday by unexpectedly hiking before the Federal Reserve decided to stay on hold while signaling a potential cut in September. On Thursday, the Bank of England lowered borrowing costs for the first time since the start of the pandemic.
Data out Friday showed US hiring slowed markedly in July and the unemployment rate rose to an almost three-year high, raising recession concerns and putting the Fed solidly on a path to cutting interest rates in September. It also spurred a deep selloff in the stock market.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:
World
Coronavirus-era supply-chain shocks have now largely washed through global economies and inflation is at or approaching targets. Most leading central bankers, consequently, are shifting focus to preserving economic growth and employment while Japan again plays the outlier.Outside of the major central banks, Brazil, Chile and Georgia held rates steady. Colombia, Czech Republic, Pakistan and Armenia cut.
US
Nonfarm payrolls rose by 114,000 — one of the weakest prints since the pandemic — and job growth was revised lower in the prior two months. The unemployment rate unexpectedly climbed for a fourth month to 4.3%, triggering a closely watched recession indicator and hammering stocks. The weak report fueled fears
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