The Sveriges Riksbank hiked its benchmark rate by 50 basis points from 0.25% to 0.75% on Thursday in order to curb high inflation and signaled further hikes for this year. In addition, “the Executive Board has also decided that, in the second half of the year, the Riksbank’s asset holdings shall shrink faster than was decided in April.” Instead of purchasing SEK 37 billion worth of bonds, the bank has decided to purchase bonds for SEK 18.5 billion. “With this monetary policy, inflation is expected to fall back next year and be close to 2 per cent from 2024,” the Riksbank noted.
Russia’s gross domestic product declined by 4.3% in May on a monthly basis, following a fall of 2.8% in April, the country’s Ministry of Economic Development stated on Thursday. “The main factors behind the decline in GDP are still transport and logistics restrictions and a reduction in domestic demand,” the ministry’s statement read.
The unemployment rate in Germany came in at 5.3% in June, data released by the country’s Federal Employment Agency revealed on Thursday.
China’s official manufacturing Purchasing Managers’ Index rose to 50.2 from 49.6 in May, survey results from the National Bureau of Statistics showed on Thursday. A score above 50.0 indicates expansion in the sector.