Y’all it is world Giraffe day!

Show some love to these lanky guys. ❤️

Only have a minute? ⏱

Japan's gamble to balance prices & wages ⚖️

Why did Japan make the decision to keep rates unchanged?

That’s what the Monetary Policy Meeting Minutes are for!

The Bank of Japan allows us to dive into the nitty gritty details of their very important meetings. 👀

Lots of talk this time around about price tags and paychecks.

🏷 Prices:

Cost for things such as raw materials have gone up, so companies may start charging more for their products. This means higher prices.

💰 Wages:

If people earn higher wage and can afford to shop more, it will help the economy grow again.

For inflation to get back to the goal of 2%, Japan needs to see:

• Higher wages 👆🏼

• Lower cost for businesses/higher profits 👇🏼

The plan?

Keep monetary policy loose so that wages will rise faster than prices. Hence, no change in the -0.1% interest rate. 🤷‍♀️

Trade Of The Day 📈

XAUUSD

Thursday News

Big day for the Bank of England! 👀

Here’s what you’re in for:
(All times in EST)

• 03:30 — Can Swiss inflation get any lower? 🤯

  • Event: SNB Interest Rate Decision, SNB Monetary Policy Assessment & SNB Press Conference

  • Major pairs to watch: USDCHF

• 07:00 — BoE crushing dreams 25 basis points at a time 💔

  • Event: Bank of England Minutes, BoE Asset Purchase Facility, BoE Interest Rate Decision, BoE MPC Vote Rate Cut, BoE MPC Vote Rate Hike, BoE MPC Vote Rate Unchanged & Monetary Policy Summary

  • Major pairs to watch: GBPUSD

Can Swiss inflation get any lower? 🤯

Switzerland is definitely doing something right. They have the lowest inflation rate of any advanced economy.

Advanced economy just means one that is more complex and developed than others. Like the US, Canada, Japan or Australia.

Although inflation sits at only 2.2%, the Swiss National Bank (SNB) is not quite satisfied. Their target? Less than 2% per year.

Tomorrow the SNB is going to release their interest rate decision and based on their goal to drive inflation down even further, experts predict an increase in the current rate of 1.5% by 25 basis points to 1.75%. 👀

Expect USDCHF ↓

Why do they need to keep adjusting interest rates if they’re doing so well?

I know. It seems like the fight is never over. And really, it’s not.

Any good central bank can always find room for improvement. 💪🏻

Right now, rent in Switzerland has been increasing heavily and is predicted to account for ½ of inflation. If they don’t do something now, it might get away from them.

Plus, with inflationary pressure remaining high around the globe, they’ve gotta stay on their toes. 👣

BoE crushing dreams 25 basis points at a time 💔

The UK is begging for a change in the BoE’s strategy to bring down inflation but it doesn’t look like they’re going to get it.

The consensus for the interest rate decision tomorrow is yet another 25 basis point increase to 4.75%.

Expect GBP/USD ↑

This will be the 12th increase in a row.. 😬

Why do people want change?

They can’t afford anything.

People who dreamed of buying a home or a car can throw that one to the wind because the cost of getting a loan is insane. 💰

Looking for a new job? Tough luck. Businesses are having to cut back on costs to make ends meet in this economy. If you’re lucky enough to find a position, you’re probably going to be looking at a crappy wage.

But who is making all these decisions?

The Bank of England makes these decisions based on the votes from their Monetary Policy Committee (MPC).

There are 9 members in the MPC. 👬👬👬👬🧍‍♂️

All 9 members vote to either raise, pause, or cut the interest rates.

So far this year, at every meeting, 7 of those members voted to raise the interest rate and 2 of them voted to pause.

That’s a big fat 0 for members that wanted to bring the rates down at all. 👌🏼

The consensus for the votes tomorrow remains the same at 7 for a hike and 2 for a pause.

If you’re one of those people waiting for a change in strategy, don’t hold your breath. 😮‍💨

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