GBP Markets News Regulators 

Asia markets climb as Bank of Japan keeps monetary policy steady

“Asia Pacific markets mostly traded higher as investors reacted to the Bank of Japan’s monetary policy decision and economic outlook” writes Kiyoshi Ota for cnbc.com. Chinese mainland shares also traded higher: The Shanghai composite was up 1.29 percent while the Shenzhen composite added 1.74 percent. Source: cnbc.com

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News Regulators 

Hong Kong spends nearly $700M to boost currency

“The Hong Kong dollar recently traded at 7.8498 per U.S. dollar” writes Saumya Vaishampayan for marketwatch.com. The Hong Kong Monetary Authority intervened for the first time this year late last week, selling U.S. dollars to buy 1.51 billion Hong Kong dollars ($192 million) in London and New York trading hours on Friday.The authority moved to prevent the Hong Kong dollar from weakening beyond 7.85 to the U.S. dollar–the weakest level allowed under the financial hub’s currency peg. Source: marketwatch.com

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Markets News Regulators 

The global supply of money has stopped growing for the first time in years, and a prominent economist is convinced it’s created an 80% chance of recession

“To the apprehension of several market experts, a key gauge of the global supply of money has stopped growing” writes Akin Oyedele for businessinsider.com. This gauge matters to market participants because it reflects just how tight central bank policy is.The Fed and other global central banks were still very much enacting accommodative policies and juicing financial assets with liquidity.It’s the global monetary base, defined as the sum of currency in circulation, as well as deposits that banks and other depository institutions hold with the Federal Reserve.Multiple Fed officials have also…

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Markets News 

Modern Monetary Theory could cause one big problem for financial markets

“For financial markets, that could mean serious consequences for long-term rates and credit spreads” writes Gina Heeb for businessinsider.com. Interest would become a new expenditure in the budget, she said, but that payment would be made by instructing the Federal Reserve to credit the bondholders’ account.You can probably guess how markets would react if the government suddenly decided to just print money to fund its projects. Source: businessinsider.com

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News 

Annual average inflation rate rises to 12.2% by end-January

“According to CBE, the target was hit in May 2018 when headline annual inflation recorded an average of 15.1% in Q4 of the year” writes Hossam Mounir for dailynewsegypt.com. According to the CAPMAS, this increase in the monthly inflation rate during January 2019 was driven by higher prices of vegetables by 3.9%, and grain and bread prices by 1.8%.Furthermore, the IMF stated in its report that the recent rises in inflation were caused by temporary increases in food and energy prices, but tightening the monetary policy helped to lower prices…

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News 

Egypt, Arab countries implementing comprehensive strategies to boost financial inclusion: IMF

“Arab countries have made progress, but there is still much to be done to increase growth and job opportunities for all, she said” writes Hagar Omran for dailynewsegypt.com. Increasing financial access came up as a key aspect of SME development and the inclusive growth agenda, Lagarde noted, adding that over the past year, IMF has looked closely into international experience and policies to increase SME financial inclusion.SMEs in the region is only 7% of total bank lending.” Closing SMEs financial inclusion gap would yield multiple economic benefits, such as boosting…

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Markets News Regulators Stocks 

The Fed may have sparked the latest stock rally, but one expert says it’s actually planting the seeds for the next market crash

“And as the stock market has continued to grind mostly higher, he’s persisted with his calls, undeterred” writes Joe Ciolli for businessinsider.com. At the center of that argument are so-called market internals, which are a series of indicators that take the overall pulse of the equity landscape.His main argument is that the Fed’s monetary easing practices have created unsustainable market conditions.The chart below shows how powerful monetary policy has been as a market driver during periods when market internals were either favorable or unfavorable. Source: businessinsider.com

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GBP News 

Watch: Bank of England’s Carney gives press conference after monetary policy decision

“Bank of England Governor Mark Carney spoke at a press conference following the U.K. central bank’s latest monetary policy decision” writes Cnbc Com Staff for cnbc.com. “Now, how these tensions are reconciled once the fog lifts will have consequences for the path of monetary policy in ways that cannot be predicted in advance,” he added. Source: cnbc.com

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GBP News 

British pound slips as Bank of England leaves rates unchanged, cites global growth and Brexit uncertainties in policy update

“The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”” writes Markets Reporter for marketwatch.com. The British pound GBPUSD, +0.3248% dropped on Thursday following the Bank of England’s first monetary policy update and inflation report of the year, in which it left interest rates unchanged, in line with market expectations.The central bank said that a continued, gradual tightening of monetary policy was necessary given its forecast for inflation, but warned of various factors weighing on the U.K. economy.”UK economic growth…

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Mad or miraculous: As the euro turns 20, has monetary union been a good thing?

“January marks 20 years since the launch of the euro, but whether it’s been good for the region and whether it can survive another 20 years unscathed is hotly contested” writes Hannelore Foerster for cnbc.com. The ECB had been established a year before to define and administer monetary policy for the euro zone and had the chief responsibility to maintain price stability with an inflation target of below but close to 2 percent.Hence, in January 1999, the euro — a unique experiment in which countries in Europe would give up…

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