EUR News
LAST UPDATE: September 24, 2025
BoE hawk Pill says he is more comfortable on inflation risk
Bank of England (BoE) Chief Economist Huw Pill stated that he is “more comfortable” with the outlook for inflation risks in the UK. Pill, a known hawk on the Monetary Policy Committee, noted that a repricing in markets and other factors have made him less concerned than he was months ago.
Insight
Pill’s shift in tone from hawkish to more comfortable is a significant signal that the BoE may be nearing a change in its monetary policy. His comfort with inflation risks suggests that the central bank might be more open to considering interest rate cuts in the near future.
Bulgaria Must Strengthen its Fiscal Discipline to Reap Eurozone Membership Benefits, IMF Mission Recommends
An IMF mission has recommended that Bulgaria strengthen its fiscal discipline to fully benefit from eurozone membership. The report notes that while Bulgaria has made progress, a sustained commitment to sound fiscal policies is crucial for a smooth transition and long-term economic stability.
Insight
The IMF’s recommendation highlights the strict requirements for joining the eurozone. Bulgaria’s efforts to meet these standards show the country’s commitment to closer European integration, but the warning from the IMF underscores the need for continued, and difficult, reforms.
Swiss surplus hit by gold export swings on Trump tariff fears
Switzerland’s trade surplus was impacted by a sharp drop in gold exports to the US after a temporary tariff scare. A sudden, short-lived imposition of tariffs on gold bars caused exports to the US to plummet, highlighting the sensitivity of trade to policy changes.
Insight
This event demonstrates the significant impact that even the threat of tariffs can have on international trade, especially for commodities like gold. It shows how market behavior can shift rapidly in response to trade policy uncertainty, and how easily a surplus in a key sector can turn into a deficit.
Turkey facing worst drought in over 50 years
Turkey is experiencing its worst drought in over 50 years, with precipitation levels at historic lows. The drought is affecting agriculture and water supplies, causing widespread concern about food security and economic stability.
Insight
The severity of this drought is a stark reminder of the impacts of climate change on a national scale. It shows how an environmental crisis can quickly become an economic and social one, forcing the government to manage a major challenge beyond its control.
