Experts believe that the challenge that will face the United States and Europe in 2023 is evident in the fact that the road ahead of them is not yet paved, as the new year is around the corner and Europe is still under the threat of the energy crisis andRussian-Ukrainian warAnd the United States is under the curse of the strength of its economy in a labor market that is still strong and an economy that attracts money looking for safety.
What do we expect from the US Federal Reserve meeting?
and raise US Federal Reserve Interest rates have increased 6 times this year, four of them by 0.75 points, bringing the rate to between 3.75 and 4 percent, but despite these steps, the interest rate remained inflation in consumer prices at 7.7 percent.
Raed Al-Khidr, a global market analyst, says in his interview with the site "Sky News Arabia economy": "The US Federal Reserve is scheduled to announce its decision on interest rates on Wednesday, and according to the (CME) tool, markets price a 50 basis point rate hike with odds of 75 percent, but the Fed meeting will not be the only important event, but we await today, Tuesday, inflation data, which It was the main driver of interest rate hikes throughout 2022, and therefore the emergence of any signs of the bank’s success in continuing to control inflation, so it will be supportive of easing the rate of interest rate hikes and thus will put pressure on the performance of the US dollar in the coming period.".
Al-Khader adds: "While the dollar has witnessed noticeable declines since the November meetings, to settle at its lowest level in six months, the dollar’s movements may not be affected much by the upcoming rate hike decision, but the US Federal Reserve’s tone, the interest path in 2023, and economic expectations will be the decisive factor in the green currency’s movements.".
The Bank of England will continue to raise interest
It was Bank of England One of the first major central banks to move to raise interest rates to control rising prices, as it raised interest since last December eight times in a row, the last of which was last November by three-quarters of a percentage point, to reach 3 percent from 2.25 percent, the highest since the global financial crisis in 2008.
But until now, the bank fails to control the pace of inflation, as it reached its highest level in 41 years at 11.1 percent, and the markets expect the bank to raise interest by 50 basis points at this week’s meeting from 3.00 to 3.50 percent, according to global market analyst Raed Al-Khader. Which confirmed the difficulty of raising interest rates strongly with the escalation of fears of economic recession in Britain and the contraction of most of the main sectors.
What about the European Central Bank?
seem European Central Bank Raising interest rates in July 2022, after announcing an increase of 50 points, the first in 11 years, to witness the past September and October raising 75 basis points, each separately, in an attempt to control inflation, which reached about 5 times its target of 2 percent. While the markets expect an increase of between 50 and 75 basis points at the Bank’s December 15th meeting.
According to Al-Khader, the European Central Bank was somewhat behind the rest of the other central banks in raising interest rates, given that the economic situation in the region and the repercussions of geopolitical tensions on most sectors were preventing interest rates from being raised, but the bank found no way to raise interest rates as inflation rates continued to record new levels. since the creation of the eurozone.
He added that if the US Federal Reserve begins to give any signals that would ease the pace of monetary tightening in 2023, the European Central Bank will do the same, especially since the economic conditions in the euro area and the contraction of most sectors within the region put more pressure on the bank.
The paths of 2023 are tough to plan
In turn, economic expert Hussein Al-Qamzi tells the site "Sky News Arabia economy": "With rising expectations Federal Reserve Tomorrow the main interest rate by 50 basis points, it may indicate more increases in early 2023 and at a similar pace or less, but not the Federal Reserve alone but the main central banks in the world, with the exception of the Bank of Japan, will raise interest rates this week, especially Some banks, such as the European Central Bank, are lagging behind in their battle against inflation even as the economies of the European bloc slow".
And if the US Federal Reserve raises the basic interest rate – Al-Qamzi continues – it is likely that the day after that the European Central Bank and the Bank of England will follow it by raising interest by half a basis point, and accordingly it is expected that 50 central banks in the world will raise interest rates in which the banks of the Cooperation Council countries and Jordan And possibly Switzerland, Norway, Taiwan, Singapore and the Philippines.
Al-Qumzi concludes his speech by saying: "The paths in 2023 are difficult to plan, so the challenge that will be faced United State And Europe is evident in that the road ahead of them is not yet paved, as the United States is under the curse of the strength of its economy in a labor market that is still strong and an economy that attracts money looking for safety, and Europe is still under the threat of the energy crisis and the Russian-Ukrainian war".
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And testify US dollar Since the recent November meetings, the Federal Reserve has declined significantly, to settle at its lowest level in six months, at a time when stocks are seeking to provide some recovery after the strong declines they suffered throughout the year, according to experts who attributed the main reason behind these moves to the market’s readiness to start the US Federal Reserve to ease the pace of tightening. With signs of a slowdown in inflation and at the same time the specter of recession that has come to dominate the global economy.
Experts believe that the challenge that will face the United States and Europe in 2023 is evident in the fact that the road ahead of them is not yet paved, as the new year is around the corner and Europe is still under the threat of the energy crisis andRussian-Ukrainian warAnd the United States is under the curse of the strength of its economy in a labor market that is still strong and an economy that attracts money looking for safety.
What do we expect from the US Federal Reserve meeting?
and raise US Federal Reserve Interest rates have increased 6 times this year, four of them by 0.75 points, bringing the rate to between 3.75 and 4 percent, but despite these steps, the interest rate remained inflation in consumer prices at 7.7 percent.
Raed Al-Khidr, a global market analyst, said in his interview with “Sky News Arabia Economy”: “The US Federal Reserve is scheduled to announce its decision regarding interest rates on Wednesday, and according to the (CME) tool, the markets price an interest rate hike by 50 basis points, with odds of up to 75 percent. However, the Fed meeting will not only be the important event, but today, Tuesday, we are awaiting inflation data, which was the main driver for raising interest rates throughout 2022, and thus the emergence of any signs of the bank’s success in continuing to control inflation, so it will be supportive of easing the rate hike rate and thus will put pressure on the performance of the US dollar in the coming period.
Al-Khader adds: “While the dollar has witnessed noticeable declines since the November meetings, to settle at its lowest level in six months, the dollar’s movements may not be affected much by the upcoming rate hike decision, but the US Federal Reserve’s tone, the interest rate path in 2023, and economic expectations will be the decisive factor in the green currency’s movements.”
The Bank of England will continue to raise interest
It was Bank of England One of the first major central banks to move to raise interest rates to control rising prices, as it raised interest since last December eight times in a row, the last of which was last November by three-quarters of a percentage point, to reach 3 percent from 2.25 percent, the highest since the global financial crisis in 2008.
But until now, the bank fails to control the pace of inflation, as it reached its highest level in 41 years at 11.1 percent, and the markets expect the bank to raise interest by 50 basis points at this week’s meeting from 3.00 to 3.50 percent, according to global market analyst Raed Al-Khader. Which confirmed the difficulty of raising interest rates strongly with the escalation of fears of economic recession in Britain and the contraction of most of the main sectors.
What about the European Central Bank?
seem European Central Bank Raising interest rates in July 2022, after announcing an increase of 50 points, the first in 11 years, to witness the past September and October raising 75 basis points, each separately, in an attempt to control inflation, which reached about 5 times its target of 2 percent. While the markets expect an increase of between 50 and 75 basis points at the Bank’s December 15th meeting.
According to Al-Khader, the European Central Bank was somewhat behind the rest of the other central banks in raising interest rates, given that the economic situation in the region and the repercussions of geopolitical tensions on most sectors were preventing interest rates from being raised, but the bank found no way to raise interest rates as inflation rates continued to record new levels. since the creation of the eurozone.
He added that if the US Federal Reserve begins to give any signals that would ease the pace of monetary tightening in 2023, the European Central Bank will do the same, especially since the economic conditions in the euro area and the contraction of most sectors within the region put more pressure on the bank.
The paths of 2023 are tough to plan
In turn, the economist Hussein Al-Qamzi told the “Sky News Arabia Economy” website: “With expectations of a rise Federal Reserve Tomorrow the main interest rate by 50 basis points, it may indicate more increases in early 2023 and at a similar pace or less, but not the Federal Reserve alone but the main central banks in the world, with the exception of the Bank of Japan, will raise interest rates this week, especially Some banks, such as the European Central Bank, are lagging behind in their battle against inflation even as the economies of the European bloc are slowing.
And if the US Federal Reserve raises the basic interest rate – Al-Qamzi continues – it is likely that the day after that the European Central Bank and the Bank of England will follow it by raising interest by half a basis point, and accordingly it is expected that 50 central banks in the world will raise interest rates in which the banks of the Cooperation Council countries and Jordan And possibly Switzerland, Norway, Taiwan, Singapore and the Philippines.
Al-Qamzi concluded his speech by saying: “The paths in 2023 are difficult to plan, so the challenge that will face United State And Europe is evident in the fact that the road ahead of them is not yet paved, as the United States is under the curse of the strength of its economy in a still strong labor market and an economy that attracts money seeking safety, and Europe is still under the threat of the energy crisis and the Russian-Ukrainian war.