Global news wrap: Monetary policies, G7 summit, climate warning
Mint’s Plain Facts section brings out an update on key global data to thread together the biggest developments in the world that are worth paying attention to. The accompanying analysis and charts explain how each story is creating ripples on the global stage, where it is headed in the coming weeks, and whether it can impact India. This month we track the upcoming monetary policies, the G7 summit held in Italy, and how rising temperatures are ringing alarm bells.
The monetary policies around the world are diverging, with the US Federal Reserve tilting towards a hawkish stance, while other countries have already started or are mulling interest rate cuts. To begin with, inflation in the UK finally reached the Bank of England’s aim of 2% in May but it has not materialized in a rate cut, yet. (There are expectations of one in August.) On the contrary, war-hit Russia, where inflation was as high as 8.3% in May, has signalled a rate hike in the upcoming meeting in July.
Bank of Canada, which kickstarted the rate cuts this month, may hit a pause in the upcoming meeting in July. Indonesia's central bank, which delivered a surprise rate hike in April, may stay put in the upcoming meeting, while South Korea and Singapore, which are facing inflationary pressures, are also expected to keep interest rates unchanged at their meetings in July. The 50th summit of the Group of Seven (G7) nations, held in Italy earlier this month, concluded with a strong stance against the Russia-Ukraine war.
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