The raised its forecast for headline to 3.4%, which is a whole percentage point higher than the March forecast and brought closer the timing of the next increase in interest rates. The Federal Open Market Committee, which sets policy, indicated that the rate hike could occur as early as 2023 (before that, it was announced in March that the rate increase would not be observed until at least 2024). The has given no guidance as to when it will begin cutting back on its aggressive bond buying program.
As we predicted, the US stock market collapsed and the dollar shot up.
The next meeting of the key will be held last week – the Bank of England will announce its decision on the parameters of . Taking into account yesterday’s data from the UK (consumer rose by 2.1%, which exceeds the target of the Bank of England), the has a formal reason to start tightening . But he is unlikely to use it.
We have already written that China is very unhappy with the current prices for raw materials. The lion’s share of the rise in prices for commodity items is accounted for by speculative activity. Not surprisingly, China continues to tighten speculative screws. This time, China has ordered state-owned enterprises to limit their presence in overseas product markets. But most importantly, the authorities also announced that they would soon dump zinc, copper and aluminum from secret national reserves on the market. After this announcement, copper prices fell by 10%.
In this light, let us recall once again our recommendation to sell commodity assets.
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