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Politics

Coverage of fiscal and monetary policy, regulation, taxation, and geopolitical decisions that influence markets and everyday life. We break down government action and its economic impact.

China's PBOC Implements Targeted Liquidity Measures Rather Than Broad Stimulus

China's PBOC Implements Targeted Liquidity Measures Rather Than Broad Stimulus

China's central bank took a measured policy approach this week, targeting specific liquidity bottlenecks rather than implementing broad economic stimulus. People's Bank of China Governor Pan Gongsheng announced a series of financial sector measures, including steps to increase the use of overnight reverse repo operations, narrow

Federal Reserve Signals Higher-for-Longer Rates as Inflation Forecasts Rise

Federal Reserve Signals Higher-for-Longer Rates as Inflation Forecasts Rise

The US Federal Reserve surprised markets this week with revised inflation projections and explicit signaling of prolonged high rates. The updated Federal Reserve projections showed the median policymaker expecting modest tightening by year-end, a notable shift from March projections which had pointed to rate cuts, with nine of 18

Brazil's Central Bank Signals Caution on Rate Cuts as Inflation Surprises to Upside

Brazil's Central Bank Signals Caution on Rate Cuts as Inflation Surprises to Upside

Brazil's Central Bank delivered a cautious message this week, maintaining rate cuts but signaling potential pauses if inflation pressures intensify. While the central bank is still likely to continue cutting rates by 25 basis points at upcoming meetings, taking the Selic rate to 13.0% by year-end,

South Africa Raises Rates as Inflation Breaks Above Central Bank Comfort Zone

South Africa Raises Rates as Inflation Breaks Above Central Bank Comfort Zone

South Africa's Reserve Bank took decisive action this week, raising the repo rate from 10.25% to 10.5% in response to inflation breaching the central bank's comfort threshold. South Africa's inflation rate jumped from 3% to 4%, prompting the Monetary Policy Committee of

India's Capital Spending Just Hit an All Time High. The Fiscal Deficit Is Falling at the Same Time.

India's Capital Spending Just Hit an All Time High. The Fiscal Deficit Is Falling at the Same Time.

India's Union Budget for the 2026 to 2027 financial year set government capital expenditure on track to cross Rs12 lakh crore, equivalent to roughly $144 billion, marking a year on year increase of approximately 10%. As a share of GDP, that level of capital spending represents an all

Pakistan Just Posted Its Smallest Budget Deficit in 21 Years. The New Budget Bets on Keeping It That Way.

Pakistan Just Posted Its Smallest Budget Deficit in 21 Years. The New Budget Bets on Keeping It That Way.

Pakistan's Ministry of Finance reported that the country is on track to post its smallest budget deficit in 21 years for the fiscal year ending June 2026, with the deficit projected at 3.6% of GDP. The primary surplus, which excludes interest payments on debt, reached 3.2%

Zambia's Inflation Fell From 11.2% to 9.4% in One Month. A Maize Harvest Did Most of the Work.

Zambia's Inflation Fell From 11.2% to 9.4% in One Month. A Maize Harvest Did Most of the Work.

The Bank of Zambia cut its key policy rate by 75 basis points to 13.5% on February 11, 2026, the second consecutive rate cut, after annual inflation slowed sharply from 11.2% in December 2025 to 9.4% in January 2026. The scale of that single month decline is