HSBC expects the European Central Bank to raise interest rates by another 25 basis points in December 2026.

US Dollar: 1. The US Treasury conducted $5.187 billion in long-term bond repurchase operations on Thursday, falling short of the set $6 billion limit. 2. The Fed's mouthpiece: Friday's inflation report is key to whether the Fed will raise interest rates. 3. Trump: Let's call this $5,000 bonus the "Trump bonus." 4. Reuters poll: 55% of bond strategists expect the 10-year Treasury yield to reach 5% within three months. Euro: 1. The European Central Bank (ECB) raised interest rates by 25 basis points as expected, and raised its economic growth forecasts and core inflation forecasts for this year and next. 2. Market bets on ECB interest rates remain stable, with another rate hike expected in 2026. 3. ECB: It will determine the appropriate monetary policy stance based on data and on a meeting-by-meeting basis. It will not make any pre-commitments to a specific interest rate path. 4. ECB President Lagarde: Inflation will remain above target levels until the first half of 2027. The economy has shown resilience. This resilience may continue into the third quarter. 5. ECB Governing Council member Nagel: We cannot rule out the possibility of needing to enter a moderately restrictive range. Pound Sterling: 1. The market fully expects the Bank of England to raise interest rates four times, the first time since March. 2. The UK economy recorded strong growth again in July, exceeding market expectations for the third consecutive month. Yen Yen: 1. ECB President Lagarde: The previous joint euro-yen intervention amounted to €500 million. 2. Former Bank of Japan official: Bessant's "unusual" intervention may damage the Bank of Japan's credibility. 3. Japanese Finance Minister Katayama Satsuki: I will not comment on specific exchange rate levels. My stance has not changed. 4. Japanese Finance Minister Katayama Satsuki: The US Treasury Secretary's statement about "I am the house" sounds a bit scary in Japanese. 5. Reuters poll: The impact of high oil prices will be offset by government subsidies; Japan's core inflation rate is expected to remain at 1.8% in August. 6. Sources: The Bank of Japan is expected to raise interest rates by 25 basis points next week, potentially hinting at a faster pace of rate hikes, but there are no preconceived notions regarding the final interest rate or the timing of further rate increases. Other: 1. The Danish central bank raised interest rates by 25 basis points, increasing its key rate from 1.85% to 2.1%. 2. Polish central bank governor Grapinski: If long-term CPI rises, interest rates may be raised. 3. Sberbank: Russian companies no longer face the problem of excessive rupee accumulation in bilateral trade with India in their own currency.

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