The European Central Bank Governing Council said on Thursday that in the current conditions of high uncertainty it will maintain gradualism and flexibility as the guidelines for its monetary policy anticipating that the assets purchase program will be concluded by the third quarter.
By Edouard Wemy – Tapering refers to the Federal Reserve policy of unwinding the massive purchases of Treasury bonds and mortgage-backed securities it’s been making to shore up the economy during the pandemic.
Brazilian orthodox Economy minister Paulo Guedes has not resigned and has no intention of resigning despite the fact he will have to live with the exceptional expenditure of some 45bn Reais, as part of the Auxilio Brazil support program for vulnerable families and president Jair Bolsonaro's 2022 reelection plan.
Venezuela easily held to the dubious honour of being at the top of the list of the 2020 Global Economic Misery Index, while Argentina was merely seven notches behind.
Brazil's statistics agency IBGE said on Tuesday the monthly rate of producer price inflation kicked off this year at its second highest, with prices rising across all 24 activities surveyed.
A member of Bank of England's Monetary Policy Committee, Gertjan Vlieghe, openly supported the use of negative interest rates if the U.K. needs more stimulus, while Deputy Governor Dave Ramsden said the bank still had scope for more quantitative easing. which has been a tried and tested policy.
The Bank of England (BOE) told banks to start getting ready for negative interest rates but added that the message shouldn’t be taken as a signal that the policy is imminent. The BOE made the announcement as it held its key rate at a record low of 0.1%.
The outlook for Brazilian interest rates over the next two years rose to their highest in several months, a central bank survey of economists showed on Monday, even as exchange rate and inflation expectations held steady.
Producer price inflation in Brazil jumped to its highest on record in October, figures showed on Thursday, led by another month of rising food prices, which will likely stir the debate further on the wider outlook for inflation and interest rates.
The US has cut interest rates to almost zero and launched a US$ 700bn stimulus program in a bid to protect the economy from the effect of coronavirus. It is part of a coordinated action announced on Sunday in the UK, Japan, the Eurozone, Canada, and Switzerland.