Asian Markets Plunge as New Zealand Raises Interest Rates to 14-Year High, Hong Kong Unveils Budget
Overview of Global Economic Development
The global economy has been volatile and in flux in recent months, with several central banks making moves to adjust interest rates and other policies. This article provides an overview of some key developments in the global economy, including actions taken by the Bank of Korea, the Reserve Bank of New Zealand, the Australian central bank, and the U.S. Federal Reserve.
Bank of Korea to Pause Rate Hikes
South Korea’s central bank is expected to hold its interest rate at 3.5% on Thursday, according to a Reuters poll of 41 economists. This would make the Bank of Korea one of the first central banks in the region to halt its hiking cycle compared to its global peers, except Japan and China – after the Reserve Bank of New Zealand raised its cash rates by 50 basis points on Wednesday. Australia’s central bank lifted its rates by 25 basis points earlier this month.
Increased Regulatory Scrutiny Could Impact Coinbase’s Business
Increased regulatory scrutiny could impact Coinbase’s business, according to John Todaro, vice president of the crypto asset and blockchain research firm Needham. This comes after Coinbase CEO Brian Armstrong recently said increased scrutiny “will ultimately benefit” the company after reporting a lower-than-expected revenue on Tuesday. Todaro urged the industry to take Armstrong’s words “with a grain of salt” because “if that regulation comes up to strength, it could impact Coinbase’s revenue and verticals”. Another crypto exchange, Kraken, had to cease its U.S. staking business due to enforcement action by the SEC.
Hong Kong’s Paul Chan Says HKEX Exploring Stock Trade During Severe Weather
Hong Kong’s financial secretary Paul Chan said that the Hong Kong Exchanges and Clearing (HKEX) would study a “series of proposals” to improve trading conditions in the city, including measures to allow stock trading during severe weather. The CEO of HKEX told CNBC in November that the bourse is “constantly” looking to review the protocol of halting trade when authorities issue a typhoon warning of Signal 8 or higher.
Oil Prices Dip Slightly Ahead of Fed Meeting Minutes
Oil prices inched lower as investors look ahead to the minutes of the U.S. Federal Reserve’s latest meeting later in the day for signs of further rate hikes. Brent crude futures last traded down 0.23% to $82.86 a barrel, while the U.S. West Texas Intermediate futures slipped 0.24% to $76.18.
Hong Kong Economy to See a Rebound in 2023
Hong Kong’s economy is expected to see a rebound of 3.5% to 5.5% in 2023 after it saw a 3.5% contraction in gross domestic product for the whole of 2022. Financial Secretary Paul Chan said the “external environment deteriorated markedly” in 2022, adding Hong Kong’s total exports of goods posted a decline of 13.9% in real terms last year.
- The South Korean won weakened marginally on Wednesday, trading at 1,305.17 against the U.S. dollar.
- Prices of Bitcoin fell 3.47% and last traded at $24,070.88; Ether also fell 3.43$ to $1,640.07, according to CoinMetrics.
The global economy has been volatile and in flux in recent months, with several central banks making moves to adjust interest rates and other policies. This article provided an overview of some key developments in the global economy, including actions taken by the Bank of Korea, the Reserve Bank of New Zealand, the Australian central bank, and the U.S. Federal Reserve.
The global economy is in rapid change and flux, with central banks making moves to adjust interest rates and other policies. This article provided an overview of some key developments in the global economy and highlighted the potential implications of increased regulatory scrutiny for companies such as Coinbase.