Now: Inflation Catapults Dollar Up
US Inflation data help dollar stive for the day even with other currencies having a choppy session. The inflation figure yesterday came out at 8.3% YoY which is higher than the anticipated number at 8.1%.
This figure means that the process of stabilize the economy still far away before done and the monetary policy probably still need a lot more of pressure to control the balance out the current economy growth and inflation rate.
European Central Bank will son start to take action. The rising inflation finally reach the limit of what the European zone able to handle and now to prevent the overheating economy, the rate hike will be introduced.
According to the president of ECB, Christine Lagarde, the central bank highly likely to raise the rates as soon as this July and this statement is supported by a few other governing council members of the ECB. Madis Muller said that the stimulation program APP should end by the July and Francois Villeroy added that the rate will start hiking by this summer.
12 May 2022