U.S. unit labor costs surged in the third quarter, increasing at an 8.3% annualized rate last quarter, while productivity declined at its sharpest pace since 1981, adding to signs that high inflation could last for a while.
“Many of the causes of inflation would not be tackled directly by raising interest rates.” Bank of England Governor Andrew Bailey says rates were not increased from 0.1% as it would ‘slow down the economy’ and “probably cause unemployment to rise”.
The Bank of England kept interest rates on hold, dashing investors’ expectations for a hike that would have made it the first of the world’s big central banks to raise borrowing costs after the pandemic.
What people are saying?
Vinet Sharma Federal reserve & its objectives always have been to make ponzi scheme look most splendid economic model be it qe, taper, bailouts or zero interest rates. Fed knows just like its officials involved insider trading. Entire wall street, big tech benefiting even as inequality rises.
Andy Au Well, raising interest rates won’t made OPEC+ increase their output, ironically more likely to decrease their output instead if consumer demand falls.