Bank of Japan Leaves Policy Unchanged

Consumer prices in France remained unchanged in May after falling for three consecutive months. The CPI was revised from previously estimations of -0.10% in May, data from Insee showed. On a monthly basis, French consumer prices gained 0.40% as expected, and extended the gains from April's 0.10% increase. Prices gained as food prices increased on account of a rise in petroleum prices, for the third month straight. Another measure of inflation, the harmonized index of consumer prices or HICP was up 0.50%.

 

At the FOMC meeting yesterday, the US Federal Reserve left the Fed fund rates unchanged at 0.50%, as widely expected. The decision was also unanimous for the first time since January. Federal Reserve officials remained divided on the rate hike outlook this year, with participants torn between one and two rate hikes. The Fed maintained its view that interest rate hikes will be gradual and did not give any indications on their schedule. The FOMC statement acknowledged the recent decline in the jobs report in May but expressed confidence that it was only transitory, while FOMC staff economic projections showed that Fed officials expect the US economy to rise 2.0% in 2016, slightly lower than March’s prediction.