Markets this week are eyeing the Jackson Hole Symposium, which is an annual meeting where global central bank leaders come together in a place called (you guessed it) Jackson Hole in Wyoming. High on the agenda is likely to be discussions of the ongoing interest rate hikes, as well as the potential recessions around the world.
The PBOC (People’s Bank of China) took the interesting decision to cut their one year prime rate, (in other words, their interest rate on short-term loans), by 0.1%. Many expected them to cut this by 0.15%, and to also alter their 5 year rate. Instead, they decided to leave their 5 year rate untouched. The decisions left markets mixed in their responses, but after a rocky previous week with poor Chinese economic data, any signs of positivity are welcome.
Data on Spanish consumer confidence is scheduled to be released today, which may show the impact of a country in uncertain political territory. Having been the first country in the Eurozone to hit the target 2% inflation, many had high hopes for Spain’s economy. The recent snap election and inconclusive results have changed the outlook and may well impact today’s consumer sentiment.
Sources: Financial Times, Trading Economics, Politico, Bloomberg