News

On June 17, while investors have no doubt about the Federal Reserve's decision to maintain the federal funds rate target range at 3.50%–3.75%, analysts at Crédit Agricole pointed out in a report that this monetary policy meeting is still one of the most important of the year. 'This will be Kevin Warsh's first meeting as FOMC Chair since taking office, and he will face a daunting task,' said the global market strategist. He noted that the new Fed Chair not only needs to assess the economic situation but may also push for changes, particularly in the central bank's communication strategy. 'His first actions and initial statements will be closely watched, as transitions at the world's most influential monetary institution typically put pressure on capital markets.' (Jinshi)

Today I met with the global chairman of Shell to discuss how to help the industry purchase more fuel and ensure that more fuel flows into Australia.

(1) The UK’s inflation rate in May was recorded at 2.8%, matching the 13-month low reached in April but lower than economists’ previous expectation of 3.0%. Due to the impact of the US-Iran war, the UK’s inflation rate remains nearly 1 percentage point higher than the central bank’s forecast made in January. (2) The UK’s reliance on imported natural gas makes it more severely affected by the conflict than most Western countries. In April, the Bank of England stated that inflation could exceed 3.5% by the end of the year, and in the worst-case scenario, might break above 6% early next year. (3) However, this week financial markets were reassured by the prospect of the US and Iran reaching an agreement to reopen the Strait of Hormuz. Economists expect that the Bank of England’s Monetary Policy Committee will keep interest rates unchanged at 3.75% this month, with a 7-2 vote. The inflation data was released a day before the central bank’s interest rate decision.