pakistan

No pause in sight as ECB eyes next rate hike

Published

11 months ago

June 12, 2023

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No pause in sight as ECB eyes next rate hike

The European Central Bank (ECB) will almost certainly deliver another interest rate hike on Thursday, pressing ahead with its fight against inflation even as the Eurozone slides into a recession.

Analysts predict that ECB policymakers will copy May’s move and again raise borrowing costs by 25 basis points, taking the closely watched deposit rate to 3.50 per cent.

It would be the Frankfurt institution’s eighth-consecutive hike since last July, when it kicked off an unprecedented campaign of monetary tightening after Russia’s war in Ukraine sent food and energy costs surging.

Eurozone inflation slowed to 6.1pc year-on-year in May after hitting a peak of 10.6pc last October, suggesting the ECB’s efforts were having an impact.

But with the bank’s two-percent inflation target still out of reach, policymakers have stressed it was too early to take the foot off the gas, hinting at rate hikes even beyond June.

ECB President Christine Lagarde said earlier this month rates were getting “closer to our cruising altitude”, but “we need to continue climbing”.

The picture is different in the United States where the Federal Reserve is expected to pause its rate-hiking cycle on Wednesday after 10 consecutive increases, as it takes stock of how its tightening is feeding through to the real economy.

Like central banks around the world, the ECB has to walk a fine line between raising borrowing costs to dampen demand and tame inflation, without triggering a deep economic downturn.

Revised data last week showed that the 20-nation Eurozone unexpectedly shrank by 0.1pc for two straight quarters at the end of 2022 and the start of 2023, meeting the technical definition of a recession.

While still mild, the surprise winter recession adds to fears that the region did not cope as well as thought with the fallout from Russia’s war, and casts doubt on more optimistic predictions for 2023.

“The Eurozone economy has turned out to be less resilient than anticipated a few weeks ago,” said ING bank economist Carsten Brzeski.
But he said the disappointing data were unlikely to deter the ECB as it remains laser-focused on bringing down inflation.

Capital Economics economist Jack Allen-Reynolds said he expected the ECB to “hint” at a further 25 basis-point rise in July and emphasise that rates will stay high “for a long time”.

Much will depend on the ECB’s latest economic forecasts, set to be unveiled on Thursday.

Observers expected little change from the previous projections, which saw inflation only returning to target in 2025, at 2.1pc.

Although rapidly falling energy prices and fading supply chain bottlenecks have helped ease inflation in recent months, prices for services remain high in part because of strong demand in tourism.

ECB officials have also expressed concern about wages becoming an important driver of inflation, as workers use record-low Eurozone unemployment to boost their demands for salary increases in order to compensate for higher living costs.

Core inflation has remained stubbornly high in the Eurozone, easing only slightly to 5.3 percent in May, from 5.6pc in April.

The ECB’s most recent forecasts put it at 2.2pc in 2025. “There is no clear evidence that underlying inflation has peaked,” Lagarde warned last week.

Deutsche Bank economists said the ECB will need “robust evidence that underlying inflation is slowing” before it will “skip or pause” its rate-hiking cycle.

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pakistan

KP CM Gandapur’s interim bail extended till May 28 in arson attack case

Published

23 hours ago

May 18, 2024

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KP CM Gandapur's interim bail extended till May 28 in arson attack case

A district and sessions court of Rawalpindi on Saturday extended the interim bail of Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur till May 28.

The additional district and sessions judge conducted hearing of interim bail plea for Ali Amin Gandapur in a case of arson and meddling government affairs. Advocate Muhammad Faisal Malik appeared on behalf of the KP chief minister.

During the hearing, a request was submitted by KP CM Gandapur for exemption from attending court proceedings which was accepted by the court.

Gandapur had made the request due to his official engagement in government affairs. Later, the additional district and sessions judge extended the interim bail of CM Gandapur till May 28.

It should be remembered that a case was registered against Gandapur in Nasirabad police station.

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pakistan

CM Maryam directs measures for land record digitalisation

Published

23 hours ago

May 18, 2024

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Punjab Chief Minister Maryam Nawaz has issued directives to implement concrete measures for the digitalization of land records across the province.

Presided over a crucial session focused on Board of Revenue reforms, CM Nawaz received a comprehensive briefing on the Punjab Urban Land Systems Enhancement (PULSE) project.

During the session, officials from the Punjab Land Record Authority and Management of State Land provided insights into the project’s business plan and execution strategies.

The digitalization of land records under the PULSE project is being undertaken with the support of the World Bank.

This ambitious initiative aims to digitize all land records in Punjab on an owner-based system, marking a significant step towards transparency and efficiency in revenue management.

Key highlights from the briefing include the categorization of land properties into clear, and disputed categories, denoted by green, yellow, and red respectively.

Each buyer will be assigned a unique property number, streamlining legal processes and reducing complications associated with property transactions.

The implementation of a transparent partition of land and parcel document system will enhance the transparency and fairness of revenue management.

The digitalization process will also simplify the Record of Rights (Fard) and property transfer system, ensuring accessibility and efficiency for citizens.

In a move to facilitate overseas Pakistanis, the government plans to introduce services such as overseas property transfer, mutation, registration, and e-survey.

CM Maryam Nawaz has underscored the importance of swift action and collaboration among relevant departments to expedite the digitalization of land records.

Provincial Information Minister Azma Bukhari, MPA Sania Ashiq, chief secretary, P&D chairman, SMU head and other officials attended the session.

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pakistan

PM directs envoy to extend all possible help to Pakistani students

Published

24 hours ago

May 18, 2024

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PM directs envoy to extend all possible help to Pakistani students

Prime Minister Shehbaz Sharif on Saturday directed the Pakistani ambassador in Bishkek to provide all possible help to Pakistani students.

Prime Minister Sharif contacted the Pakistani Ambassador to Kyrgyzstan Hassan Ali Zaigham by telephone and directed to provide all kind of support and assistance to the Pakistani students. He also ordered the Pakistani ambassador to visit the hostels and meet the students.

On this occasion, the Pakistani ambassador informed the prime minister about the current situation in Bishkek and said no Pakistani was killed in the incident.

He said the embassy was assisting the wounded students. The prime minister emphasised to keep in constant touch with the parents of the students and provide them timely information.

PM Sharif directed that all kinds of medical facilities should be provided to the injured students, and arrangements should be made for immediate return of the injured students who were willing to return to Pakistan.

Government of Pakistan will bear the cost of return of students. The prime minister said he was personally monitoring the situation in Kyrgyzstan.

“We will not leave our students alone in this situation. Our government is also in touch with the government of Kyrgyzstan,” said the prime minister.

Prime Minister Shehbaz Sharif expressed deep concern over the attacks on students from Pakistan and other countries in Kyrgyzstan. He directed the Pakistani ambassador in Bishkek to provide all possible help to the Pakistani students.

A statement from the Prime Minister’s Office said the Pakistani Embassy had provided emergency numbers and was continuously monitoring the situation.

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