The Reserve Bank of India's Monetary Policy Committee (MPC) begins its three-day meeting, with market participants widely expecting the benchmark repo rate to remain unchanged. The central bank is focused on domestic inflation, liquidity, and economic growth, while monitoring global uncertainties and elevated crude oil prices.
The Bank of England's MPC maintained the UK interest rate at 3.75%, warning that an escalation of the Iran war could drive inflation above 4% by 2027, intensifying cost of living pressures. Governor Andrew Bailey dismissed immediate rate hike expectations, despite three MPC members dissenting for an immediate rise to 4%.
The Reserve Bank of India's Monetary Policy Committee kept the repo rate at 5.25% with a neutral stance. External member Saugata Bhattacharya cited rising inflation risks from supply shocks, weather, and energy prices, but favored maintaining the status quo due to tight domestic financial conditions and prevailing uncertainties.
The RBI's Monetary Policy Committee is meeting to decide on the repo rate, with most economists expecting it to remain at 5.25% due to inflation and growth challenges from the West Asia conflict.
Economist Bai Chongen argues that China's status as a middle-income country with a massive population and strong commercialization capabilities distinguishes it from Japan's economic trajectory.
The Bank of England has kept interest rates at 3.75% but warned that future increases may be necessary as the Middle East conflict drives up energy costs. The MPC voted 8-1 to hold rates for the third consecutive meeting, with only chief economist Huw Pill dissenting. Governor Andrew Bailey said higher inflation is unavoidable, with worst-case scenarios showing inflation could peak at 6% and rates might need to rise to 5.25%. UK inflation rose to 3.3% in March, with energy bills expected to rise 16% to £1,900 by summer.
The Bank of England maintained its benchmark interest rate at 3.75% in an 8-1 vote, with Governor Andrew Bailey warning that higher inflation is unavoidable due to the Middle East conflict. The MPC, which has cut rates six times since mid-2024, outlined three scenarios where inflation could rise to between 3.3% and 6.2%, with unemployment reaching 5.5-5.6% and rates needing to rise to between 4.25% and 5.25%. UK inflation rose to 3.3% in March. The decision provides relief to the Labour government before local elections next week.
The Bank of England kept interest rates at 3.75% but warned of inevitable hikes later this year as Middle East conflict drives inflation higher. The MPC voted 8-1 to hold, with only chief economist Huw Pill dissenting. Inflation rose to 3.3% in March. The Bank outlined three scenarios where unemployment could reach 5.5-5.6% and rates might climb to 5.25%.
Whitbread is cutting 3,800 jobs in the UK and Ireland, representing 12% of its workforce, as it transitions to a pure hotel business. The move follows increased tax burdens from the 2025 budget and pressure from activist investors.
Bai Chongen is a prominent Chinese economist and government adviser. He is the dean of Tsinghua University’s School of Economics and Management and serves concurrently as vice-chairman of the All-China Federation of Industry and Commerce. From 2015 to 2018, he was a member of the Chinese central bank’s monetary policy committee. This interview took place during the “two sessions” – the annual meetings of China’s top legislature and advisory body – which Bai was attending as a member of the...
UK employment growth slowed significantly with only 24,000 jobs added in the three months to February, below population growth. Payrolls contracted in February and fell by 11,000 in March, while vacancies continued to decline. Economists now forecast unemployment will rise to around 5.5% this year, potentially reaching 6% if energy prices spike further. The weak labour market, combined with the Middle East conflict driving up energy costs and business uncertainty, has complicated the Bank of England's interest rate decisions.
