The ‘real cure’ for inflation has been ignored, says Steve Forbes

The British pound plunged to a record low in Asia on Monday morning, following last week’s announcement by the new British government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of maintaining stable currencies, … Read more

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

British pound drops below $1.11 after new economic reforms

Sterling hit its lowest level since July 1, 2020. Matt Cardy | Getty Images The controversial British pound fell 1.95% against the dollar on Friday after the new British government announced a radical economic plan to boost growth. The pound fell to $1.1032 at noon London time, a few hours after the measures were announced … Read more

Turkey cuts interest rates again as country struggles with inflation

The number of Russian tourists to Europe dropped dramatically during the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Sopa images | Light rocket | Getty Images Turkey’s central bank surprised markets again with its decision Thursday to cut its key interest rate, despite inflation in the country soaring above … Read more

Investors brace for potential rate cut amid 80% inflation in Turkey

An electronic board displays exchange rate information at a currency exchange office in Istanbul, Turkey on Monday, August 29, 2022. Nicole Tung | Bloomberg | Getty Images The Turkish lira hit a new all-time low on Thursday, trading at 11:30 am at 18,377 against the dollar in Istanbul, continuing its downward decline of more than … Read more

Swiss central bank raises interest rates as inflationary pressures hit hard

Swiss National Bank (SNB), the central bank of Switzerland. COFFRINI FABRICS | AFP | Getty Images The Swiss National Bank on Thursday raised its benchmark interest rate to 0.5%, a shift that will end an era of negative interest rates in Europe. The 75 basis point hike follows a rise to -0.25% on June 16, … Read more

What to expect at the next Bank of Japan (BOJ) meeting as the yen falls?

The Japanese yen is hovering close to its weakest level since 1998, and authorities have suggested taking action to stem the currency’s decline. Ahead of the Bank of Japan’s rate decision later this week, CNBC is looking at whether Japan’s central bank could move away from its ultra-easy monetary policy as the Federal Reserve maintains … Read more

Turkey’s skyrocketing inflation threatens more losses for Gulf banks

General view of Emirates NBD Bank on January 3, 2017 in Dubai, United Arab Emirates. Tom Dulat | Getty Images DUBAI, United Arab Emirates — Banks with exposure to Turkey have suffered losses since the country’s currency began to depreciate sharply in 2018; now lenders in several oil-rich Gulf states will be hit in the … Read more

Turkey shocks markets with interest rate cut close to 80% despite inflation

Turkish President Tayyip Erdogan arrives for a NATO summit in Madrid, Spain, on June 29, 2022. Sweet Nacho | Reuters Turkey’s central bank shocked markets on Thursday with a cut in its policy rate, despite inflation in the country nearing 80%. The country’s currency, the lira, fell 0.9% against the dollar, trading at more than … Read more

Weakness Indian Rupee, Hit New Lows Amid Global Headwinds

Two thousand rupee bills on display with an Indian flag in the background. Manish Rajput | SOPA images | LightRocket via Getty Images The Indian rupee has come under intense selling pressure due to a perfect storm of global headwinds that analysts say will continue to pound the currency in the coming months. In recent … Read more