Which countries have the highest public debt? Find out the ranking and where Italy ranks.
Public debt is one parameter that describes a country’s economic situation. It is often mentioned everywhere, with another measure, GDP, which indicates a state’s total productive assets.
But which are the most indebted states, and thus, which is the ranking of the countries with the highest public debt?
Public debt: a problem to be tackled
The ranking of countries by public debt has changed since the COVID-19 pandemic, not so much by the order of the states in the ranking but by the amount of money they owe their creditors. In 2028, according to the International Monetary Fund (IMF), the global debt-to-GDP ratio will reach 100%. This indicator, usually used to analyse the economic situation of an individual state, measures the amount of debt concerning the Gross Domestic Product (GDP), i.e. the total productive assets of a state, over a year.
If the low ratio, GDP is sufficient to repay the annual debt. If, on the other hand, the ratio represents a large gap between debt and GDP, it will mean that production is not enough to repay the debts, and more will have to be demanded, increasing the ratio even further.
The situation is even more severe if we consider the quantitative tightening policies all central Western governments implement to combat inflation. Rising interest rates contribute to increasing government debt costs. If that were not enough, the outbreak of conflict in the Middle East could increase energy and fuel costs and, consequently, government spending. So, what is the ranking of the countries with the highest public debt?
The ranking of the most indebted countries
The countries with the highest public debt are ranked using the debt-to-GDP ratio. The nominal value of this measure taken ‘alone ‘needs to provide information on the real incidence of a state’s debts.
Japan (258.2%)
The country with the highest debt-to-GDP ratio is Japan. The causes of the country’s high debt are to be found in the housing bubble that burst in the 1990s.
Greece (166%)
Greece’s avoided default in 2009 is now a distant memory; the country has certainly improved in recent years. In the second quarter of 2023, it was the second fastest-growing country in Europe.
Sudan (151.1%)
Third in the ranking of countries in terms of public debt is Sudan, which has been severely affected by an economic crisis caused by internal conflicts. This has resulted in policies of international isolation negatively influenced by corruption.
Eritrea (146.3%)
Eritrea is a dictatorship headed by unelected President Isaias Afewerki. In the African state, the authoritarian government has implemented laws that severely restrict civil and political rights. In addition, it imposes long-term compulsory military and civil service, which forces many citizens to flee.
Italy (141.7%)
Our country ranks fifth among the most indebted countries. The Italian public debt reached a new all-time high in February 2023 and, after a slight decline in August, has been rising again since September.
Laos (123%)
The high ratio of public debt to GDP in Laos is mainly caused by the country’s structural challenges of macroeconomic instability. Despite this, however, the situation could improve as tourism in the country is expected to pick up again.
USA (122.2%)
Seventh on the list of the most indebted countries is the United States, which, like Italy, is pursuing quantitative tightening policies to combat inflation. One of the weak points of these policies is debt. As interest rates rise, so do the states’ liabilities.
Now that you know the ranking of the most indebted countries, you can delve deeper by reading our dedicated Academy article. This starts with a simple definition and then deals with the history of Italy’s public debt.
The recent drop in inflation rates in France and Italy has ignited a lively debate about possible moves by the European Central Bank (ECB), with much attention focused on the At the last ECB meeting in April 2024, the Governing Council decided to keep the three key interest rates unchanged.
This decision came despite the recent drop in inflation rates in France and Italy. In fact, the picture in March sparked a lively debate on possible moves by the European Central Bank, pointing to the possibility of an early rate cut. This discussion comes against a backdrop of Europe actively trying to balance economic growth with controlling inflation, a topic of considerable interest to investors, policy-makers, and consumers.
The European panorama
The eurozone witnessed a significant reduction in inflation in 20 nations, which fell to 2.4% in March. This result exceeded analysts’ expectations, who had forecast a stable inflation rate of 2.6%
This is consistent with the inflation trend, which has shown a steady decline since its peak of 10.6% in October 2022, driven by pandemic disruptions and geopolitical tensions, particularly Russia’s invasion of Ukraine.
A further decline is therefore encouraging and marks a moment of optimism, which the ECB meeting in April 2024 confirmed.
Indeed, the Council pointed out that most measures of core inflation are showing signs of easing, with wage growth moderating gradually and companies beginning to absorb some of the increase in labour costs into their profits.
The demand-pulling effects of previous interest rate hikes, together with tight financing conditions, are helping to moderate inflation. Nevertheless, domestic price pressures remain strong, particularly in the service sector, keeping service price inflation at high levels.
Falling inflation in France
In France, inflation slowed to its lowest level since July 2021, with consumer price growth slowing to 2.3% in March from 3.2% in February, according to the national statistics agency. This was well below economists’ forecasts, which expected a figure of 2.8%, signalling a general slowdown in price increases. In particular:
services inflation dropped to 3%
that of energy at 3.4%
and a significant decrease in food inflation to 1.7 per cent, with fresh food prices falling by 3.9 per cent year-on-year.
Month-on-month inflation data further confirmed the trend, slowing from 0.9% to 0.3%, indicating a considerable easing of inflationary pressures in the eurozone’s second-largest economy.
Falling inflation in Italy
Italy also reported a lower-than-expected inflation rate for March, with consumer prices rising by 1.3% year-on-year, against forecasts of 1.5%. This moderation was attributed to the end of seasonal clothing sales and price increases in transport services, along with a slowdown in falling energy costs.
ECB rate cut decisions
The interest rates on the main refinancing instruments, the marginal lending facility and deposits will remain fixed at 4.50 %, 4.75 % and 4.00 % respectively.
Furthermore, according to statements given at the press conference following the meeting, the Council believes that inflation levels in the coming months will still fluctuate around current levels. The decline in inflation will not be linear and will therefore have to be assessed on a case-by-case basis. In all likelihood, the target level of 2% will only be reached next year.
François Villeroy de Galhau, Governor of the Bank of France, hinted at the possibility of a rate cut in June, provided inflation continues to fall faster than expected and the economy remains stagnant. He emphasised the importance of not overburdening economic activity by maintaining a tight monetary policy for a prolonged period.
Speaking at a financial event in Barcelona, Pablo Hernández de Cos outlined a scenario where June could see the start of interest rate cuts by the ECB. As Governor of the Bank of Spain, De Cos’ outlook carries significant weight, highlighting a cautious but optimistic approach to the Eurozone economy.
Wage growth and inflation
Despite encouraging signs of cooling inflation, ECB monetary policymakers remain
Despite encouraging signs of cooling inflation, the ECB’s monetary policymakers remain cautious, particularly as wage growth gradually moderates. Companies are starting to absorb some of the increase in labour costs with their profit margins.
With service sector inflation down only slightly to an annual pace of 3.9% in February, the central bank is taking a measured approach, probably waiting until June to reassess wage pressures and their potential to bring inflation closer to the target.
Market expectations and ECB position
Analysts believe that the biggest complication could come if the US Federal Reserve delays its policy easing to keep up the fight against inflation. For this reason, they believe the ECB will not cut rates before its big sister.
To the supporters of this interpretation, ECB President Christine Lagarde replies: ‘We are data-dependent, not Fed-dependent’. She adds, ‘We do not speculate what other central banks might do. (…) Different factors drive inflation in the US and the Eurozone. (…) It cannot be assumed that Eurozone inflation will mirror US inflation.”
After the ECB decision, money markets were pricing about a 70% chance of a 25 basis point rate cut in June, compared to about an 80% chance earlier on Thursday.
Experts such as Carsten Brzeski, global head of macro at ING, suggest that the March inflation data, combined with upcoming information on wage growth and ECB staff forecasts for GDP and inflation, are tilting the narrative towards a first rate cut in June. Kamil Kovar of Moody’s Analytics interprets the latest data as a significant step towards defeating inflation, advocating up to five rate cuts this year.
Perspectives
The ECB’s decision to keep interest rates unchanged and to continue with a measured monetary policy reflects a careful assessment of current economic conditions and the inflation outlook. By committing to a flexible and data-driven approach, the ECB underlines its determination to ensure lasting price stability by balancing the needs for economic growth with its responsibility to keep inflation under control. The ECB’s future moves.will be awaited with great interest, as Europe navigates through complex economic challenges, seeking to ensure a sustainable recovery and long-term stability.
On 11 April 2024, the European Central Bank (ECB) is set to make a decision that could affect the economy across Europe. Recent data showing a surprising drop in inflation rates in France and Italy are growing speculation about a potential interest rate cut. This article explains the basics of the ECB’s role, inflation dynamics, and the possible impacts of upcoming policy decisions.
The European Central Bank explained
The ECB guards monetary stability for the Eurozone countries, ensuring that the euro remains a stable and reliable currency. Its main tool for achieving this goal is manipulating interest rates, a lever that directly influences economic activity across the continent.
The importance of ECB decisions
The ECB’s decisions have repercussions for the entire economy, from the expansion of companies that borrow to invest in their businesses to interest rates on personal savings accounts or mortgages.
The adjustment of interest rates can, in fact, stimulate economic growth by making borrowing cheaper or, on the contrary, cool an overheated economy. In other words, the health of the economy, reflected in employment rates, business growth, and consumption, is directly influenced by ECB policies.
ECB impact on markets
The ECB’s decisions affect not only the traditional economy but also the investment world, including cryptocurrencies.
When the ECB changes interest rates, it affects how people invest their money. If interest rates are low, it costs less to borrow money, which may make investing in stocks or real estate more attractive. On the other hand, if rates rise, keeping one’s savings in bonds with lower risk rates may become cheaper.
Although cryptocurrencies belong to a market that is considered more volatile, they are not insulated from the effects of these policies. The ECB’s decisions may influence investors’ risk appetite: in times of low rates, some may seek higher returns in cryptocurrencies, while in times of higher rates, they may prefer investment options considered safer.
The element that most influence interest rate decisions is inflation.
The role of inflation and its effects
Inflation measures how much more expensive goods and services have become in a given period. A certain level of inflation is normal and even desired in a healthy economy, as it indicates growth. However, too high or too low inflation can signal trouble, affecting everything from your grocery bill to your savings.
High inflation means your money is not worth as much as before, affecting how households plan their budgets and the future. To manage inflation, central banks such as the ECB adjust interest rates. Lowering rates can encourage spending and investment by making borrowing cheaper while raising rates can help cool a sluggish economy.
How to monitor ECB decisions
To monitor these dynamics, you can use Young Platform. As an app and on the web, Young Platform offers free membership and publishes updates that allow you to monitor the impact of economic news on cryptocurrency prices in real-time. Additionally, on the Young Platform website, all content, news, and in-depth articles are free, providing a valuable resource for staying informed.
Another useful strategy is to mark the dates of upcoming ECB meetings on your calendar or follow live press conferences. This allows you to be among the first to understand the ECB’s decisions and how they might affect the market, including cryptocurrency.
The current economic scene
Recently, there was a positive surprise for the Eurozone economy, including in countries such as Italy, France, and Germany. Inflation, i.e., as we have seen, how fast the prices of goods and services such as food, clothes and petrol rise, fell more than everyone expected in March 2024, to 2.4%. Experts thought it would remain at 2.6 per cent. The core inflation rate, which excludes volatile components such as energy, food, alcohol and tobacco, also decreased from 3.1 per cent to 2.9 per cent. This might seem like a small change, but it has great significance.
France: inflation slowed down significantly, with declines in the prices of services, energy and food.
Italy reported lower-than-expected inflation rates, following a similar trend to France.
Germany has the largest economy of all the Eurozone countries and saw prices increase by only 2.2%, the slowest pace in three years.
When inflation falls, it means that price increases slow down. For people, this might mean that the money they earn ‘lasts longer’ and that they notice fewer price increases when they shop daily. Inflation cooling in more than two major Eurozone economies has led to more speculation about the ECB’s next step.
What would an ECB rate cut signify?
Interest rates influence how much it costs to borrow money. When they are low, people and companies can borrow more easily to buy a house or invest in new projects.
Thus, if the ECB decided to lower short-term interest rates, it could make loans and mortgages cheaper, stimulating economic growth. However, for savers, this could mean lower returns on savings accounts.
Some numbers to watch out for
Despite the good news, not all sectors are slowing down similarly. Inflation in services, such as restaurants and transport, remained more or less the same, showing that wages can still push up prices in some areas. The ECB needs to consider this carefully, as such an increase could result in a postponement of the interest rate cut.
The labour market
While discussing inflation and interest rates, we have to consider another important factor for this picture: the labour market. In February 2024, the number of people out of work in the euro area was 6.5 per cent, slightly lower than last year. This means that, despite everything, people are finding jobs, which is a good sign for the economy. However, the forecast for March given by Istat is not the best, with a provisional 7.5% unemployment rate.
The difficult task of the ECB
Not all Eurozone countries experience the same situations and have the same economic climate. This difference between countries is crucial for the ECB when considering interest rates. It has to ensure that whatever decisions it makes work not only for countries with inflation problems but also for those doing well. The ECB has the complicated task of keeping everything in balance without causing problems in any area.
Conclusion
All of this affects us closely, from falling inflation to stable unemployment rates and differences between countries. It affects how much the things we buy cost, how easily companies can grow and, ultimately, how many people can find work. While we wait to see what the ECB decides, we can be sure its actions will directly impact our personaleconomy, investments, and jobs.
This article explores the outcome of the ECB’s March 2024 meeting, scheduled for 7 March 2024, by analysing decisions on interest rates, asset purchase programmes and adjustments in operational frameworks. As the eurozone faces inflationary changes and economic growth trajectories, understanding the ECB’s strategic responses is crucial for financial professionals, investors and policy analysts.
ECB Monetary Policy Decisions
In a move closely watched by markets and policymakers, the ECB Governing Council kept key interest rates unchanged, reflecting a nuanced approach to the fragile eurozone economic recovery and falling inflation.
The decision to keep the rates for the primary refinancing operations, the marginal lending facility and the deposit facility at 4.50%, 4.75% and 4.00%, respectively, underlines the ECB’s cautious optimism and commitment to price stability.
This decision is based on a complex economic environment characterised by declining inflation but persistent domestic price pressures, particularly wage growth.
The latest staff projections indicate a downward revision of inflation rates for the coming years, with an average expectation of 2.3% in 2024. These provide a glimpse of the ECB’s challenges. The figures and softened growth forecasts underline the delicate balance the ECB aims to strike between supporting economic growth and keeping inflation within its target.
APP and PEPP
A significant part of the adjustments to the ECB’s monetary policy instruments concerns the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP). The decision to let the APP portfolio decline aligns with a gradual normalisation strategy, moving away from pandemic-era monetary support measures. The gradual reduction of the PEPP portfolio, scheduled to decline by EUR 7.5 billion per month in the second half of 2024, indicates the ECB’s intention to withdraw cautiously from expansionary monetary stimulus, reflecting a response to the improving, albeit still precarious, economic landscape.
The ECB’s approach to refinancing operations was also reviewed. This analysis underlines the ECB’s efforts to refine its monetary instruments better to align them with current and projected economic conditions, ensuring that liquidity provisions to banks are consistent with broader policy objectives.
These programme adjustments are not merely technical changes but signal a deeper transition in the ECB’s policy paradigm. The ECB navigates towards normalisation by carefully scaling back asset purchases and recalibrating refinancing operations while remaining nimble enough to respond to new economic shocks or developments.
Economic Outlook
The March 2024 meeting also highlighted the ECB’s long-term strategic planning, mainly through changes to its operational framework for implementing monetary policy.
The sluggish growth forecast in 2024 suggests a euro area grappling with internal and external pressures, from high government debt ratios to global trade uncertainties. However, the anticipated rebound in consumption and investment from 2025 to 2026 reflects confidence in the region’s underlying economic resilience and the expected easing of inflationary pressures.
This section of the ECB report emphasises the role of supportive fiscal and structural policies alongside monetary strategies. The ECB’s call for rapid implementation of the Next Generation EU programme and greater integration in banking and capital markets emphasises the multifaceted approach needed to address current economic challenges and strengthen long-term growth.
Conclusion
The March 2024 ECB meeting encapsulates a critical moment in the eurozone monetary policy landscape. By maintaining interest rates, refining asset purchase programmes, and refinancing operations, the ECB carefully balances its immediate responses to current economic conditions with its long-term strategic objectives.
As inflation rates adjust and economic projections evolve, ECB policies will be crucial in shaping the euro area’s path to recovery and stability.
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Experts’ forecasts for the euro-dollar 2024 exchange rate: which currency will be stronger?
What are the forecasts for the EUR/USD exchange rate in 2024? As always, experts in the currency market and beyond closely monitor the EUR/USD exchange rate. Every movement of the quotation is constantly analysed, as is the continuous strengthening and weakening of one currency against another. For this reason, and because of their interest in the pair, experts make their forecasts on the EUR/USD exchange rate every year.
Euro-dollar exchange rate: forecast 2024
Before analysing the forecasts on the euro-dollar exchange rate, it is necessary to make a few theoretical clarifications. EUR/USD is the abbreviation for the euro-dollar exchange rate, i.e. the rate that indicates how many dollars are needed to buy one euro. In this currency pair, the euro is the ‘base currency’, and the dollar is the ‘quoted currency’. If, for example, the rate is 1.5, it means that $1.5 corresponds to 1 euro.
Forex investors study the euro-dollar exchange rate, generally used to calculate a currency’s strength. This metric is influenced by central bank monetary policies, such as interest rate rises, and macroeconomic conditions, such asinflation or the bond yield spread between the US and Germany. Specifically, when a central bank raises interest rates, money in circulation decreases, increasing its value.
What do the major investment banks’ forecasts on the euro-dollar exchange rate for 2024 tell us? In general, is the euro expected to continue gaining ground against the dollar, or will we see the opposite scenario?
If you are also interested in digital currencies, Young Platform allows you to check the Euro Bitcoin exchange rate and the rates of the best cryptos on the market.
According to Morgan Stanley analysts, unlike in 2023, USD will regain lost ground against EUR in 2024.
Their forecast on the euro-dollar exchange rate sees the pair reaching 1 in the coming months. Therefore, the euro’s descent that began at the end of November 2023 will not stop.
Bank of America and ING
On the other hand, Bank of America (BoA) expects a still relatively strong euro in 2024. The exchange rate estimate is 1.10 and 1.15 in 2024. Several elements could alter these assumptions, but the main one is related to interest rates. BoA analysts think that theFed’s rate cut,which will take place, again according to them, from June 2024 onwards, will undermine the strength of the dollar. The lower the rates, the more liquidity there should be in the markets, which would favour investments in riskier assets and a drop in demand for the US currency.
JPMorgan
JPMorgan’s euro-dollar exchange rate forecast from October begins with the realization that the dollar could return strong in 2024 after the crash of 2022/2023.
The main cause is the war in the Middle East and the possible increase in energy prices. JP Morgan’s forecast for 2024 has a precise price target: 1.00 in the first months of the year. This would translate into a 7% increase in the dollar’s value.
ABN AMRO Bank
ABN AMRO Bank economists, on the other hand, raised their forecasts for the euro-dollar exchange rate. The bank expects the Federal Reserve and the ECB to start lowering interest rates with the arrival of the New Year. This hypothetical situation would not favour either currency. The exchange rate is expected to settle at 1.05 at the beginning of the year and reach a high of 1.10 in the final quarter.
Who are the richest men in the world in 2023? Has Elon Musk retained his supremacy, or has another billionaire undermined him?
What is the ranking of the richest men in the world in 2023? This ranking is calculated according to net worth, which is the difference between the total value of the goods or assets owned, e.g., cash, investments, real estate, and companies, and the amount of liabilities, especially debts and mortgages.
Forbes compiles the best-known ranking of the world’s richest men annually. The one compiled by the US magazine is one of many. However, there is also the BloombergBillionaires Index, which returns the value of the possessions of the world’s wealthiest billionaires in real-time and, for this reason, may change in the coming months.
Although these two rankings show slightly different values in terms of assets, they present virtually the same ranking of the world’s richest men, except for the first position. Discover the 2023 ranking in this article.
10. Steve Ballmer
In tenth place in the ranking of the world’s richest men is the former CEO of Microsoft, Steve Ballmer. Ballmer was one of the tech company’s first employees; he joined the company founded by Bill Gates in 1980.
Over the years, he held several key roles within Microsoft, including president from 1998 to 2000. After leaving the company in 2014, he owned the Los Angeles Clippers National Basketball Association (NBA) team. His wealth is approximately $80.7 billion.
9. Mukesh Ambani
Mukesh Ambani is the chairman of Reliance Industries Limited (RIL), one of India’s largest companies. RIL manufactures petroleum and petrochemical products, fibres and materials for the textile industry. Its assets are USD 83.4 billion.
8. Carlos Slim Helu
Carlos Slim Helu, a Mexican entrepreneur and philanthropist, is ranked eighth among the 10 richest men in the world. Slim Helu is the president of Grupo Carso, an aggregation of companies operating in the telecommunications, construction, and energy sectors. He owns assets worth USD 93 billion.
7. Micheal Bloomberg
Michael Bloomberg is an American entrepreneur, politician, philanthropist, and activist. He founded Bloomberg LP and was the mayor of New York City for three consecutive terms, from 2002 to 2013. He was also a candidate in the Democratic Party primaries for the US presidential election in 2020. His wealth is approximately $94.5 billion.
6. Bill Gates
The sixth in the ranking of the world’s richest men needs no introduction. The founder of Microsoft has led this ranking for several years, continuously from 1995 to 2009 and in 2014 and 2015. His wealth since 2009 has grown every year. According to Forbes, it is around 104 billion dollars, while according to the Bloomberg Billionaires Index, it is 114 billion.
5. Warren Buffett
Also in fifth position in the ranking of the world’s richest men is a well-known figure who has been the leader in this ranking twice. Warren Buffet is considered by many to be the best investor ever. His company, Berkshire Hathaway, is the sixth largest company on the planet, with a market capitalisation of $713 billion. The total value of Buffet’s assets is $106 billion according to Forbes and $112 billion according to the Bloomberg Billionaires Index.
4. Larry Ellison
Larry Ellison is a co-founder and former CEO of Oracle, one of the world’s largest software companies. According to Forbes, his wealth is approximately USD 107 billion.
3. Jeff Bezos
The bottom step of the podium of the ranking of the world’s richest men is occupied by the founder and former CEO of Amazon, Jeff Bezos. He left the world’s fifth-largest company in 2021 to devote himself to philanthropy and other projects, such as his charitable fund, to combat climate change and promote environmental sustainability. Bezos has been the richest man in the world on four occasions: in 2017, 2018, 2019 and 2020, and his wealth in 2023 is $14 billion.
2. Elon Musk
Silver medal for South African tycoon Elon Musk. Who has recently knocked off the top step of the podium? The new chairman of Twitter, CEO of Tesla and SpaceX, and co-founder of Open AI, the company is developing Chat GPT.
He was the richest man in the world in 2021 and 2022 and is now vying for the top spot with the owner of the LVMH group. Elon Musk’s wealth of around $188 billion is undergoing significant fluctuations mainly due to the controversial deal to buy Twitter.
1. Bernard Arnault
So, who is the wealthiest individual on the planet? Forbes’ rankings of the world’s richest men and the Bloomberg Billionaires Index agree the answer is: Bernard Arnault.
The Frenchman is chairman and CEO of LVMH Moët Hennessy Louis Vuitton SE, the world’s largest conglomerate of luxury goods companies, which includes Louis Vuitton, Christian Dior, Fendi, Moët & Chandon and Dom Pèrignon. Bernard Arnault’s assets are approximately $218 billion.
And in Italy?
Who is the richest man in Italy? In our country, the ranking has remained unchanged from last year. In first place is still Giovanni Ferrero, president and CEO of the group owned by the Piedmontese company, who also occupies the 27th position in the ranking of the richest men in the world. In second and third place are Luxottica’s Leonardo Del Vecchio and fashion designer Giorgio Armani.
When will the next ECB meeting take place? The central bank’s calendar is constantly monitored not only by investors or market experts. Even ordinary Eurozone citizens follow the central bank’s meetings with interest and apprehension, as its decisions can affect households’ portfolios.
Therefore, every ECB meeting is eagerly awaited and preceded by countless predictions about Christine Lagarde’s and the Governing Council’s moves, whose words are constantly scrutinised. Here, then, is the 2024 calendar (and beyond) of meetings to monitor and attend all of the appointments with the Frankfurt institution.
The ECB’s annual calendar has several appointments. It generally meets twice a month, but monetary policy decisions are discussed only every six weeks. These are the most eagerly awaited meetings because they can influence the financial and other markets. The ECB calendar is, therefore, divided into two parts: the upcoming monetary policy meetings and the non-monetary policy meetings.
The first category of appointments, which always falls on a Thursday, is followed by the press conference of the institution’s president, Christine Lagarde, who presents what has been decided to the public and journalists.
What is discussed during each ECB monetary policy meeting? The main topics are generally Eurozone growth and GDP, quantitative tightening, inflation trends, and interest rates.
Interest rate decisions are significant because they directly impact people’s savings and purchasing power. Rising interest rates, for example, have various consequences, including rising mortgage costs. On the other hand, raising or lowering interest rates is essential for the ECB to fulfil its primary task of keeping prices stable.
The initial question arises: when is the next ECB meeting? Here is the 2024 calendar of monetary policy meetings:
Except for the October meeting in Ljubljana, every ECB meeting in 2024 will be held in Frankfurt and chaired by the Governing Council of the European Central Bank, the institution’s main decision-making body. This consists of President Christine Lagarde, Vice-President Luis de Guindos, four members appointed from among the leading Eurozone countries who hold office for eight years, and the governors of the national central banks.
After each meeting, investors monitor the markets to gauge the reactions to the European Central Bank’s decisions. Some of these also impact the cryptocurrency market. Therefore, the upcoming ECB meetings, like those of the Fed (Fed calendar 2024), should be watched. On Young Platform, the leading cryptocurrency exchange, you can monitor cryptocurrency prices simultaneously as reports on each ECB meeting.
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Next ECB non-monetary policy meeting: calendar 2024
The ECB meeting calendar also includes meetings not dealing with monetary policy issues. On these occasions, the other tasks and responsibilities of the European Central Bank, such as banking supervision for the Eurozone, are fulfilled. Here are all the dates of the upcoming meetings:
21 February 2024
8 May 2024
22 May 2024
19 June 2024
1 July 2024
25 September 2024
13 November 2024
27 November 2024
The General Council also convenes another type of ECB meetings, which have advisory and coordination functions:
21 March 2024
20 June 2024
26 September 2024
28 November 2024
ECB meeting calendar 2023
To review past meetings and conferences, this is the calendar of every ECB monetary policy meeting held in 2023. Except for the October meeting in Athens, every ECB meeting in 2023 was held in Frankfurt.
2 February 2023
16 March 2023
4 May 2023
15 June 2023
27 July 2023
14 September 2023
26 October 2023
14 December 2023
So, the next ECB meeting in 20243 will soon occur, and all eyes are on the possible cut in interest rates. But this year’s calendar of meetings is complete, and there will be plenty of opportunities to discuss the Eurozone economy.
The complete 2024 Fed meeting schedule with all upcoming dates
The Federal Reserve System (Fed) meeting schedule, i.e., the central bank of the United States, has eight annual conferences. These meetings are the equivalent of the meetings of our ECB (here, it is calendar 2024), where monetary policy decisions are made. They are widely followed events because they can influence the course of the financial markets and, in recent times, have become real turning points for the future of the global economy.
Fed meetings: what is decided and by whom
Before discovering the 2024 Fed meetings calendar, let us see how these appointments work.
The FOMC (Federal Open Market Committee) is the Fed’s operating body and mouthpiece and chairs the meetings. This is comprised of 12 members, including US central bankers and the Fed Chairman.
The FOMC assesses the financial conditions and monetary policy actions needed to achieve US economic objectives. The interest rate decision was the most decisive factor in this high-inflation period.
At each Fed meeting on the calendar, a summary of economic projections and the Dot Plot, a chart showing each Fed member’s anonymous forecast of the Fed funds rate position for the past year, the future and the long term, are presented. These appointments are highlighted in the calendar with an asterisk.
Here is an example of a Dot Plot chart published at the December 2022 Fed meeting.
DOT PLOT: The Fed's latest decision to raise rates by 50 basis points follows four consecutive 75 basis-point hikes.
These FOMC meetings are held eight times a year, last two days, followed by a press conference by Chairman Jerome Powell. Here is the Fed calendar of all meetings for 2024.
Financial players and analysts await the Fed meetings with great interest. The Institute’s decisions play a major role in US monetary policy, but not only that. On several occasions, we have also seen an impact on other markets, such as the cryptocurrency market. That is why keeping an eye on the Fed’s calendar of upcoming meetings can be helpful.
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As the curtains fell on the Fed meeting in March 2024, a wave of anticipation gave way to a reality check: the federal interest rates remain unchanged. The current target range is between 5.25% and 5.50%.
The decision, aligned with the expectations set by the Fed’s forecasts, points to a cautious approach despite the clamour for easing monetary policies. But what does this mean for the economy, consumers, and investors? This article delves into the nuances of the Fed’s latest policy stance, dissecting the layers beyond the headline decision.
Market forecast
As we stepped into 2024, the investment landscape was abuzz with optimism. Market participants harboured hopes for a series of rate cuts, envisioning as many as six or seven adjustments downward.
However, the tides of economic reality have tempered these expectations. Recent developments and data analyses have led to a revised outlook, with consensus building around three rate cuts anticipated to commence in June. This adjustment reflects a cautious optimism, recognising the persistent challenges of quashing inflation—a nemesis that has proven more resilient than anticipated.
Inflationary trends and economic indicators
Inflation trends remain a critical determinant of the Fed’s policy trajectory. Despite a decline from peak levels, inflation rates, as per the latest Consumer Price Index and Personal Consumption Expenditures Price Index, still overshoot the Fed’s 2% target. Notably, recent monthly data hint at an inflationary uptick, a factor likely weighing heavily on the Fed’s decision-making process. The upcoming PCE index update will be particularly pivotal, offering fresh insights after the March meeting.
Inflationary trends remain a critical determinant of the Fed’s policy trajectory. Despite declining from peak levels, inflation rates increased in January and February, as indicated by the latest Consumer Price Index and Personal Consumption Expenditures Price Index, and are still above the Fed’s 2% target.
Employment data and their implications
The job market’s resilience is a testament to the economy’s underlying strength. However, this robustness also presents a conundrum for the Fed, potentially fueling wage-induced inflation. The recent uptick in unemployment and solid job creation paint a complex picture for policymakers, who must balance curbing inflation and fostering employment.
“A strong increase in hiring per se would not be a reason to hold off on rate cuts,” Fed Chairman Jerome Powell said, adding that the labour market per se is not a cause for concern about inflation.
Details of the March Fed meeting
At the Fed’s March 2024 meeting, members of Congress estimated an overall rate cut of three-quarters of a percentage point by the end of 2024, marking the first decrease since the initial COVID-19 outbreak in March 2020.
The current federal funds rate represents the highest peak in 23 years. This rate determines reciprocal overnight lending costs between banks, affecting different types of consumer debt.
The anticipations concerning the three possible cuts emerge from the Fed’s so-called ‘dot plot’, a set of anonymous forecasts rigorously analysed by the nineteen members of the FOMC. This plot offers no details about the timing of the expected actions.
Federal Reserve Chairman Jerome Powell confirmed that the institution has not yet specified a timeline for the cuts but remains hopeful that they will come to fruition, provided the favourable economic data. After the meeting, the CME Group’s FedWatch index showed that the futures markets attributed a 75% chance to the first rate cut occurring as early as the 11-12 June session.
The committee anticipates three more cuts in 2026, followed by two more thereafter until the federal funds rate stabilises around 2.6 per cent, which officials believe is the neutral, non-incentive or restrictive rate.
These forecasts are part of the Fed’s Summary of Economic Projections, including projections for GDP, inflation and unemployment. The distribution of the data points revealed a more aggressive bias than in December, but without significantly altering the estimates for the current year.
Impact on markets
In response to the Federal Reserve’s decision to hold rates steady, Seema Shah, chief global strategist at Principal Asset Management, said, ‘Powell may have shown his cards: He needs a good reason not to cut rates rather than a reason to cut rates. Markets perhaps couldn’t have asked for more from the Fed, and stocks will celebrate.’
Indeed, the major averages rose on Wednesday afternoon after the Federal Reserve released its policy decision and rate forecast. The S&P 500 gained 0.3 per cent, and the Nasdaq Composite gained 0.5 per cent. The Dow Jones Industrial Average index ended the day up 401 points, or just over 1%. Treasury bond yields mainly fell, with the 10-year benchmark rate recently settling at 4.28%, down 0.01 percentage points.
Conclusion
The Federal Reserve’s latest rendezvous paints a picture of a central bank at a crossroads. Juggling the dual mandates of controlling inflation while fostering employment, the Fed walks a tightrope of monetary policymaking. For consumers and investors, the message is clear: brace for a landscape defined by gradual adjustments and vigilant observation.
The Fed’s strategies and decisions remain pivotal as the economy continues its dance with inflation and growth. With each meeting and announcement, the contours of the economic future gain clarity. Yet, in this era of unpredictability, one truth holds steady: the path ahead is paved with cautious steps and watchful eyes.
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Smart Trades, the automatic trading strategies, are coming to Young Platform! They are available as a preview for Club members only.
We are happy to announce the launch of a new feature: Smart Trades. This feature was created through a partnership with Aelium, a company specialising in developing cryptocurrency trading strategies. Smart Trades can only be activated in advance by Young Platform Club members. In this article, we will learn what they are, how they work, and what advantages they offer for your cryptocurrencies.
Managing money: a question of time
Many of us feel we have no time. We would like to devote attention to many essential or enjoyable things, but time always seems in short supply. Managing money is one of them.
Understanding financial concepts helps to set and achieve concrete goals, contributing to present and future financial security. It gives peace of mind, opens new opportunities and avoids uncontrolled debt. Developing one’s savings and investment skills increases independence and quality of life.
We firmly believe that the crypto market represents a new opportunity, and our job is to make it available to as many people as possible.
We have always tried to develop tools that are simple and as automated as possible, capable of working even with minimal amounts of money and little time. This way, anyone can try, experiment, and adapt the tools to their situation. Flexibility is our prerogative. We break down any barriers and encourage individual autonomy, starting from the heart of the problem: time.
Buy-and-Hold and Smart Trades compared
Today, we want to introduce you to a new tool that complements the Moneyboxes. These were created to automate the buy-and-hold approach over the long term. Buy and Hold isan approach that does not consider price fluctuations and volatility and tries to put cryptocurrencies aside over the years on an ongoing basis. The recurrence of purchases over the long term limits risk and the average purchase price.
The completed approach to Moneyboxes, which we want to tell you about today, is the one introduced by Smart Trades. If Moneyboxes are for ‘buying and saving,’ Smart Trades are for trading. They are, therefore, short-term indicators that execute buy-and-sell trades automatically. Smart Trades seek to exploit volatility, price trends, and breaks in support and resistance to their advantage to achieve results over weeks or months, even if they entail higher risk.
But now, let’s get into the nitty-gritty of Smart Trades to learn what they are, how they work, and what benefits and risks they entail. Above all, we must know how to harness them to achieve our goals.
Remember, the definitions provided here are greatly simplified for a non-expert audience. If you wish to delve deeper into the indicators, we recommend reading the in-depth articles on Academy. It’s crucial to understand that financial markets are intricate and unpredictable, and an indicator’s performance can fluctuate based on numerous factors. Before you proceed, consider your risk profile, investment goals, and time horizon. Also, avoid basing your decisions on a single source of information and always seek advice from a professional who can guide your choices. This table provides some information that may aid your research. But always keep in mind: the final decision is always yours!
What are Smart Trades
Smart Trades are automatic trading indicators that operate without human intervention thanks to an algorithm.
This algorithmic trading type uses mathematical models to execute buy and sell orders based on market signals and predefined parameters. With Smart Trades, even beginners can approach trading.
Algorithmic trading: how it works
Algorithmic trading can execute various trading orders at a higher speed than manually. These systems are programmed to recognise trends, patterns and price discrepancies. Based on this data or signals, they execute fast trades to maximise returns.
An algorithm in trading is a detailed recipe that tells the computer exactly what to do and when. For example, ‘Buy 100 shares of XYZ Corporation when their price falls below 50€ and sell them when their price rises above 60€’. The computer monitors the market 24 hours a day, 7 days a week, and automatically executes these orders when the specified conditions occur, without you constantly tracking the market.
Why activate a Smart Trade?
Activating a Smart Trade offers numerous advantages, especially for beginners. It is a gateway to the trading world that does not require years of experience or constant market monitoring. Smart Trades reduce the emotional factor, one of the biggest obstacles for traders, and allow a more disciplined, data-driven approach. In addition, they will enable you to take advantage of market opportunities 24 hours a day, 7 days a week.
How to Choose a Smart Trade
Before activating a Smart Trade, it is important to carefully evaluate each strategy, understand the associated risks, and determine which best aligns with your objectives. The app describes each strategy’s characteristics, and you can read the complete guide to help you interpret and use them in your choice.
How Smart Trades are activated
Activating a Smart Trade on the Young Platform is simple and intuitive. They are currently only available on the Young Platform app, not the web version. After selecting the strategy that best suits your needs, follow this step-by-step tutorial. Simply enter the amount to be allocated and check the summary data before confirming. Once configured, the Smart Trade will start trading automatically, allowing you to monitor progress and make necessary changes. For more details on the functionality, please read our Terms and Conditions and Aelium’s Terms and Conditions.
Smart Trades available on Young Platform
Each of the four proposed strategies works on different parameters. You can read the Academy’s in-depth article on a strategy by clicking on it in the following list:
Keltner Channels
Supertrend
Momentum
Bollinger Bands
Cryptocurrencies available for Smart Trades
The cryptocurrencies available for use with Smart Trades include some of the most popular and liquid ones on the market:
This selection of cryptocurrencies allows diversifying one’s strategies across different assets, taking advantage of each coin’s unique characteristics.
Smart Trade Monitoring
To monitor the gains and losses of your Smart Trades, access the ‘Smart Trades’ section of the app. In the ‘Active’ tab, find and select the strategy of interest to view the details. Here, in the Profit&Loss (P&L) section, you can analyse the performance of your plan, checking the percentage increase or decrease and the amounts gained or lost. If you wish to increase your budget, you can easily do so by using the ‘Add Funds’ button on the same detail screen. By following these simple steps, you can actively manage and monitor the effectiveness of your automatic trading strategies on the platform.
Smart Trades that can be activated
Smart Trades can only be activated in advance for Clubs. If you do not belong to a Club, you can only activate one Smart Trade at a time, but by joining a Club, you can unlock many more.
The availability of these strategies varies according to Club membership.
What fees are applied to Smart Trades?
During the preview period for Club members, a fixed commission of 0.2% will be charged on the transaction amount. Please note that fees may change once the feature becomes available to the public. It’s important to mention that no commission discounts will be applied to Smart Trades, including those offered by the Club subscription or acquired bonuses.
Young Platform does not provide tax, investment, or financial services and advice. The information on this website is provided for informational purposes only. It is presented without regard to any specific investor’s investment objectives, risk appetite, or financial circumstances and may only be suitable for some investors. Buying and selling cryptocurrencies involves risks, including total loss of capital. Users should always research, consult a qualified professional before deciding, and carefully assess their risk profile and loss tolerance.
