The Bank of England has practically abandoned its target of moving inflation down to 2 percent, saying it won't consider raising interest rates until unemployment falls below 7 percent, Karlsson writes. The move isn't likely to change much policy, but it is an explicit reminder that inflation rates have been above 3 percent since 2005.
Japanese bond yields have started to move up again, rising above the pre-'Abenomics' level to 0.91 percent, Karlsson writes, something that worries many Japanese officials. Private demand has collapsed as investors have increasingly started to believe that the Bank of Japan through its purchases will actually achieve its new stated inflation target of 2 percent, a slump in demand that some have called a "bond buyer's strike."
Child jockeys take part in the Shetland Pony Grand National during The Game Fair 2016 at Ragley Hall in Alcester, Warwickshire, England, on Saturday. The Shetland Pony Grand National raises money each year for a nominated charity and The Game Fair celebrates British field sports and country life.