1. Yellen’s call to mobilize private capital for climate fight
2. Unemployment claims increase in the US
3. Inflation emphasis for interest rates from ECB

Yellen’s call to mobilize private capital for climate fight

US Treasury Secretary Janet Yellen has called on multinational banks to mobilize more capital to combat climate change.

The meeting was attended by US President Joe Biden’s Special Representative for Climate John Kerry, as well as representatives of the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and World Bank. It was stated that the ways of mobilizing his finances were discussed.

“Secretary Yellen encouraged the MDBs to increase their focus on climate adaptation, particularly through private-sector operations, and to support developing countries in implementing ambitious emissions reduction measures and protecting critical ecosystems,” the Treasury said.

In the statement, it was noted that Yellen called on these banks to evaluate their incentives, structures and practices in order to maximize private capital mobilization for climate change.

In the ministry’s statement, it was reported that Yellen encouraged development banks to focus more on climate adaptation, especially through private sector operations, and to support developing countries in protecting critical ecosystems by implementing emission reduction measures.

Unemployment claims increase in the US

According to the US Department of Labor’s report on weekly unemployment benefits, the number of people who applied for unemployment benefits for the first time in the country increased by 51 thousand to 419 thousand in the week ending July 17 compared to the previous week.

Contrary to expectations, unemployment benefits, which increased to the highest level in 2 months, were estimated to be around 350 thousand.

The data of the previous week in the country was revised from 360 thousand to 368 thousand. 4-week average unemployment benefits applications increased by 750 thousand compared to the previous week and became 385 thousand 250.

On the other hand, ongoing unemployment applications were recorded as 3 million 236 thousand in the week ending July 10, with a decrease of 29 thousand compared to the previous week.

The number of people who applied for unemployment benefits for the first time in the USA peaked at 6 million at the end of March last year, as the epidemic affected the labor market.

Unemployment benefit applications were hovering around 200 thousand before the Covid-19 outbreak.

Analysts expect labor market distress to subside in the fall as schools reopen and state unemployment benefits end in September.

Inflation emphasis for interest rates from ECB

In the statement made by the ECB, it was stated that at the meeting of the bank’s governing council, it was decided not to change the interest rates. The policy rate was kept at zero, the deposit rate at minus 0.50 percent and the marginal funding rate at 0.25 percent.

It was stated that the management council continues to expect bond purchases to be realized at a much higher rate than in the first months of the year due to the epidemic. Besides it was stated that the decision is to purchase 1.85 trillion euros of bonds until March 2022.

In the statement, it was noted that the bank will maintain the current interest rates until it reaches the 2 percent symmetrical inflation target, and that it is ready to make changes in all instruments to reach the inflation targets.

Speaking at the press conference, ECB President Christine Lagarde said: “The recovery in the euro area continues. But the shadow of the epidemic is still on us. There is an increase in inflation. But this is expected to be mostly temporary. The inflation outlook remains low in the medium term.”

Stating that they are ready to make corrections in all necessary monetary policy instruments, Lagarde stated that the economy recovered in the second quarter and that the recovery is expected to continue in the rest of the year with the removal of epidemic restrictions.

Expressing that they expect the manufacturing sector to show a strong performance in the coming period, Lagarde stated that the increased Delta variant cases may put pressure on the recovery of the service sector.

“We expect the economy to return to pre-pandemic levels in the first quarter of next year. We still have a long way to go. We expect inflation to rise in the medium term, but remain below our targets, with the economy’s recovery and monetary support,” Lagarde said.