ECB Interest-Rate Hikes Must Persist Into Next Year, Kazaks Says

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.European Central Bank Governing Council member Martins Kazaks said interest rates should be raised beyond year-end — a time when economists increasingly expect the euro zone to be in the midst of a recession.The reason for the prolonged hawkish stance, according to the Latvian official, is that elevated inflation is likely to persist despite a downturn. He backs a hike of 75 basis poin
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Mexico Central Bank Hikes Rate to 9.25%, in Step With Fed

(Bloomberg) — Mexico raised its benchmark interest rate to a record 9.25% on Thursday as policy makers prioritize their fight against inflation over reviving a slowing economy.Most Read from BloombergApple Ditches iPhone Production Increase After Demand FaltersMacKenzie Scott Files for Divorce From Science Teacher HusbandTrump Refuses to Delay Florida Deposition in Phone-Fraud Case Despite HurricaneVolatility Grips Stocks as Fed Remains Hawkish: Markets WrapThe UK’s Crisis of Confidence Was Yea
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Dollar firm as markets brace for another big Fed rate hike

The dollar remained firm below a two-decade high versus major peers on Tuesday, as investors braced for the Federal Reserve to continue its aggressive interest-rate-hiking campaign to rein in overheated inflation. The two-year U.S. Treasury yield, which is extremely sensitive to policy expectations, rose as high as 3.970% overnight for the first time since November 2007. Investors have fully priced another 75 basis point bump by the Federal Open Market Committee for Wednesday, and lay 19% odds for a super-sized full percentage point increase.
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