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ECB warns of stronger euro impact, holds rates
enca9d ago

ECB warns of stronger euro impact, holds rates

ECB warns of stronger euro impact, holds ratesNorman CloeteFri, 02/06/2026 - 06:00 BRUSSELS - The European Central Bank warned a stronger euro could push inflation down too far after recent gains in the single currency, but sought to downplay any immediate threat to the eurozone economy.As expected, the central bank for the 21-nation single-currency area kept its benchmark interest rate on hold at two percent, where it has been since June last year.ECB President Christine Lagarde stressed the eurozone economy, which has been picking up speed recently, remained "resilient" and officials were confident inflation would settle around the central bank's two-percent target.But much attention at her press conference focused on the recent gains of the euro, which jumped above the $1.20 threshold last week as the dollar weakened on renewed worries about US economic policy under President Donald Trump. Combined with news that inflation had dropped below the ECB's target in January, speculation had mounted that the central bank might start mulling if and when to cut rates.Lagarde made a nod to these concerns, warning that "a stronger euro could bring inflation down beyond current expectations", and noted the issue had been discussed by ECB officials at Thursday's meeting.A stronger currency makes imports cheaper, which tends to push inflation down, potentially leading consumers to delay purchases, with negative ripple effects across the economy.A strong euro can also weigh on the eurozone's crucial exporters, particularly Germany, as it makes the cost of companies' goods pricier overseas.But despite the gains last week, Lagarde pointed out that the euro had been steadily strengthening against the dollar since shortly after Trump took power last year.And the current exchange rate was "very much in line with the overall average" since the euro was introduced, she stressed.She also reiterated that the ECB feels it is in a "good place" -- phrasing which has been taken to mean the central bank is happy with the current level of rates.The euro was barely changed against the dollar after Thursday's meeting at $1.18.

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January CPI rises on stronger Tet holiday demand
vietnamplus9d ago

January CPI rises on stronger Tet holiday demand

CPI in January 2026 rose 0.05% month-on-month, with urban areas up 0.02% and rural areas up 0.09%. Of the 11 major commodity and service groups, nine recorded price hikes while two saw declines.Inflationary risk persists as Vietnam targets CPI below 4.5% in 2026: expertsVietnam's 2025 CPI rises 3.31%, within National Assembly’s targetFood prices fuelled by flood impacts, pushing up November CPI

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Sensex falls over 200 pts, Nifty below 25,600 ahead of RBI MPC decision; mid, smallcaps slip
economictimes_indiatimes9d ago

Sensex falls over 200 pts, Nifty below 25,600 ahead of RBI MPC decision; mid, smallcaps slip

Indian stock markets, Nifty and Sensex, began Friday trading with slight declines. This marks a second consecutive session of losses for the benchmark indices. Investors are adopting a cautious stance. This is due to the upcoming Reserve Bank of India's Monetary Policy Committee policy announcement later today. Global market sentiment also appears subdued.

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Sensex, Nifty open little changed ahead of RBI MPC decision; mid, smallcaps slip
economictimes_indiatimes9d ago

Sensex, Nifty open little changed ahead of RBI MPC decision; mid, smallcaps slip

Indian stock markets, Nifty and Sensex, began Friday trading with slight declines. This marks a second consecutive session of losses for the benchmark indices. Investors are adopting a cautious stance. This is due to the upcoming Reserve Bank of India's Monetary Policy Committee policy announcement later today. Global market sentiment also appears subdued.

#CRYPTO#STOCKS