Back to Press Releases

Higher Inflationary pressure on Central Banks

The central banks are under pressure of fears of higher inflation around the world, and the investors are closely monitoring how the central banks would react to recent record inflation rates.

Higher Inflationary pressure on Central Banks

The central banks are under pressure of fears of higher inflation around the world, and the investors are closely monitoring how the central banks would react to recent record inflation rates.

Recently, the CPI data from the UK and the US showed that the inflation accelerated again in June. On Tuesday, July 13, the Department of Labour reported that US consumer prices posted the biggest rise in 13 years. The US inflation data showed that the consumer price index jumped 5.4%, well above the expectations of 5%. Meanwhile, the UK annual inflation rate rose to 2.5% in June from 2.1% in the previous month, the highest level in almost three years.

At their July meetings last week, the Bank of Canada and Reserve bank of New Zealand decided to leave the interest rate unchanged. However, both central banks have announced that they will reduce their bond-buying program to control the inflationary pressures. “The Committee agreed that the policy of ‘least regret’ now assumes that the substantial level of monetary support, which has been in force since mid-2020, may be reduced earlier,” the RBNZ said.

The Bank of Canada expects inflation to rise above three percent for the rest of the year due to higher petrol prices. The bank says economic conditions have improved enough to reduce its weekly purchases of federal bonds to $2 billion from $3 billion.

On the other hand, the European central bank and the US Federal Reserve still believe that inflationary pressure is temporary. The monetary policy of the United States will provide "strong support" for the economy "until full recovery," Fed Chairman Powell said on Wednesday. European Central Bank President Christine Lagarde said on Sunday that policymakers will not repeat their past mistake of tightening policy too early.

However, many market participants expect a more sustained price increases, which could put pressure on other central banks to reduce the amount of their asset purchase program.

Read more

Eight out of ten richest people in the world do business in technology

Eight out of ten richest people in the world do business in technology

The technology sector rules world business. Gulf Brokers updated its review of the world’s richest people investing in technologies. Since first publishing the list, based on data from Forbes Real Time Billionaires, in April 2021 there is another billionaire among the world's 10 richest people. It is Steve Ballmer moving from 14th to the 10th place in the Forbes ranking as of October 29, 2021. The trend of accelerating technologies is thus confirmed even in month-on-month movements in the billionaires’ wealth.

Social Media Pioneers Delivering Impressive Results

Social Media Pioneers Delivering Impressive Results

The social media apps enjoyed a huge surge in usage in 2020 after people were trapped inside their homes looking for an escape during the pandemic time. How does the story go in 2021?

Recently, social media pioneers Twitter, Facebook, Snapchat and Pinterest delivered strong results for the second quarter, which ended on June 30.  The exception was Pinterest, shares of which fell more than 20% within two weeks after the Q2 earnings announcement.