Over the weekend, European Central Bank President Christine Lagarde said it was "very likely" they would raise interest rates this month to keep a lid on inflation. Australia's central bank is expected to lift rates by 25 basis points on Tuesday. (Reporting by Sudarshan Varadhan; Editing by Sonali Paul)
Twitter: @sudvaradhan;)) By Sudarshan Varadhan
March 6 (Reuters) - Oil prices opened lower on Monday
after China set a modest target for economic growth this year of
around 5%, lower than market expectations of 5.5% growth in the
world's second- largest oil consumer.
Brent crude futures were trading down 50 cents, or
0.6%, at $85.33 a barrel at 0147 GMT. U.S. West Texas
Intermediate (WTI) crude futures were down 46 cents, or
0.6%, at $79.22 a barrel.
China's closely watched growth outlook was down from last
year's target of 5.5% and came in at the low end of
expectations. Policy sources had recently told Reuters a range
as high as 6% could be set.
Premier Li Keqiang said on Sunday the foundation for stable
growth in China needed to be consolidated, insufficient demand
remained a pronounced problem, and the expectations of private
investors and businesses were unstable.
At the same time, oil prices are likely to be impacted by
rate hikes across the world as global central banks tighten
policy over fears of increasing inflation. Traders have started
factoring in rate hikes across the world, but are hoping for
smaller increases than last year.
The United States Federal Reserve's Chair Jerome Powell will
testify to Congress on Tuesday and Wednesday, where he will
likely be quizzed on whether larger hikes are needed in the
world's largest oil consuming country.
The United States' future rate hikes are also likely to
depend on what the February payrolls report reveals on Friday,
followed by the February inflation report due next week.
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