Fitch Changes Japan's Credit Outlook Rating to Negative

On Friday, Sweden's ruling political party managed to reach an agreement with its opposition to continue with nuclear power, which it had previously agreed to phase out and freeze nuclear energy. The energy deal is aimed at securing long term energy supply to households and industries. As part of the deal, energy consumption taxes are expected to rise, which in turn could boost Sweden's CPI by 0.20% according to some estimates. Further details will be announced including the proposed energy tax hike and the time frame from when the new taxes come into effect.

 

German Bundesbank President Jens Weidmann in a scheduled press conference in Frankfurt on Monday said that the ECB needs time for its existing monetary policies to work, noting that the actions thus far have been appropriate, and dismissing calls for further intervention from the European Central Bank. Mr. Weidmann said that the definition of price stability is that the inflation rate target is achieved in the medium term, and said that this gives the central bank time to wait for the effects of the agreed monetary policy to stoke inflation. Last week, the ECB started purchasing corporate sector bonds as part of its QE policies, in addition to the regular sovereign bond purchases already installed. Interest rates in the Eurozone are zero percent with deposit rates in the negative.