world economic news

World Economic News – Tuesday 23/08/2022



Reserve Bank of India (RBI) Governor Shaktikanta Das told the Economic Times in an interview that the country’s inflation has peaked and will slow down in the upcoming months. “Inflation has moderated from the peak. Bond yields at the long end reflect the anchoring of inflation. Softening of crude and commodity prices are also supportive” he said.


Brazil will set another record in its agricultural economy this year with the largest grain harvest in history. It was helped considerably by the so-called “safrinha” of corn. According to the Companhia Nacional de Abastecimento (Conab), Brazil’s “safrinha” is expected to reach 87.4 million tons between summer and winter break, 44% more than last year.


Indonesia’s central bank unexpectedly raised its policy rate by 25 bps to 3.75%, the first rate hike since November 2018, as it seeks to tame runaway inflation and strengthen the rupiah exchange rate.


Eurozone’s PMI composite output index tumbled to an 18-month low at 49.2, signaling a reduction in business activity after 16 months of growth. Germany led the contraction posting the largest output decline since June 2020 while France’s activity dropped for the first time in 18 months.


The Japanese Jibun Bank Flash Manufacturing PMI Index landed at 51.0 in August, S&P Global’s preliminary report released on Tuesday showed. That’s down from 52.1 in July, although it remains above the boom-or-bust line of 50.