The Fed vs Inflation

Mark Lennihan / AP 

 

The Fed vs Inflation  

Fed chief believes in further interest rate hike  

 

Boston Fed President Susan Collins warns that the central bank may have to raise interest rates one more time. She says so in an interview with the Financial Times.  

 

Collins is surprised by the resilience of the economy in times when borrowing costs are gradually increasing. She believes that the resilience indicates that "more needs to be done". 

 

- I do not yet see the slowdown that is necessary to succeed in bringing inflation down to the two percent target, says ho 

 

Riksbank Governor Erik Thedéen. Archive image. Stefan Jerrevång/TT  

 

The development of the Swedish krona  

The idea: Almost impossible to tell when the crown turns up  

 

The krona is too weak and fundamentally undervalued. This is what Riksbank Governor Erik Thedéen tells Bloomberg, reports Finwire.  

 

- It should strengthen and we believe it will, but we know that it is almost impossible to predict currency movements in the short and medium term, he tells the news agency.  

 

This week, the krona reached its lowest rate ever against the euro. On Thursday afternoon, the krona had weakened by 4 öre to 11.90 kroner per euro. Against the dollar, the krona lost 7 öre to 10.98.

 

 

Hafize Gaye Erkan Emin Sansar / AA / TT  

 

Turkey's economic crisis  

Turkey shockingly raises interest rates - by 7.5 percentage points  

 

Turkey's central bank raises the key interest rate by 7.5 percentage points so that it lands at 25 percent.  

 

Analysts had predicted a rate hike of 2.5 percentage points, according to a Reuters poll. 

 

Newly appointed Hafize Gaye Erkan has been head of the central bank for two months now, but at the end of July three new members joined the monetary policy committee. This was the newly assembled committee's first interest rate decision, writes Bloomberg.