It is time for the final US Federal Reserve’s interest-rate meeting of the year. It would be a massive surprise if it did anything other than leave interest rates unchanged at 1.75%….
…. If anything, the Fed should raise them, given that we could hear that core inflation numbers could rise above 2%.
But Fed chair, Jerome Powell, probably enjoys his job a lot more than he would like to let on. We probably won’t hear the end of it from The White House if the Fed even hinted that interest rates might go up.
Staying with consumer prices, China’s inflation rate is forecast to jump from 3.8% to 4.3%. In October, inflation was driven by high pork prices. It is little wonder that the country has just exempt US pork from import tariffs. Looking after the stomach is more important than saving face.
Indian’s inflation rate is also expected to be on the rise. In October, it climbed to 4.6%, which was the highest in over a year.
The reading for November could be higher still at 5.1%, which could explain why the Reserve Bank of India kept interest rate on hold at 5.15% at its last meeting.
The European Central Bank will announce its latest interest-rate decision. At Mario Draghi’s final meeting in October, the bank kept the main refinancing rate unchanged at 0%. It added that rates could remain at their present level until inflation reaches 2%.
Voters in the UK will get a final reading on the economy before they go to the polling booths on Thursday 12 December. Some are hoping that a new government could resolve the Brexit issue, which has taken its toll on the UK economy. In September, the economy only expanded 0.9%. October could be worse with experts expecting a year-on-year growth rate of just 0.7%.
And finally, with Christmas just around the corner, Singapore retailers will be hoping for a bit of festive cheer.
But following a 2.2% year-on-year dip in September, the numbers could worsen to a 4.5% decline in October. That said, November could be an entirely different story with Black Friday sales giving Singapore shopkeepers something to smile about.
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None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: David Kuo does not own shares in any of the companies mentioned.
