Macro-News round-up:


  • Bank of Japan debated groundwork for future easy-policy exit at Oct meeting – Some Bank of Japan policymakers discussed the need to start phasing out massive stimulus and lay the groundwork for a future exit from ultra-low interest rates, according to a summary of opinions at their October meeting. Governor Ueda: We will maintain the negative rate and YCC framework until the sustained achievement of 2% inflation comes into sight.
  • China’s consumer prices back in decline as recovery wobbles. China’s consumer prices fell back in decline in October, indicating a slowing economic recovery. consumer prices dropped by 0.2% yoy in October 2023, compared with a flat reading in the prior month and forecasts of a 0.1% fall. Fears of deflation in China are returning, reflecting an economic slowdown, affecting the trade balances of its neighbors. South Korea, Japan and even Australia.
  • Fed’s Cook says geopolitical tensions could change US economic outlook. The US economic outlook could change due to geopolitical tensions, according to Fed governor Cook. Fed’s Harker: The next Fed rate choice ‘could go either way’ depending on data.
  • ECB policymakers keen to cool euphoria over inflation drop. European Central Bank policymakers want to temper the excitement about the drop in inflation. In line with what we mentioned two days ago on social media, when comments from Fed members seemed to try to calm excessive market positivity.
  • Euro zone retail sales fall in Sept, exposing weak consumer demand. Euro zone retail sales fell in September, showing weak consumer demand.
  • Bank of England Pill: We do not need to raise rates to bear down on inflation.