SHANGHAI (Reuters) - China’s central bank could cut its benchmark policy rate for the first time in four years if the U.S. Federal Reserve delivers a widely expected cut in late July, analysts say, as Chinese policymakers step up support for the slowing economy. FILE PHOTO: A Chinese national flag flutters outside the headquarters of the People's Bank of China, the Chinese central bank, in Beijing, China April 3, 2014. REUTERS/Petar Kujundzic/File Photo Market watchers, however, believe the People’s Bank of China (PBOC) is more likely to follow any U.S. rate cut by lowering its key short-term money market rates. It would not be the first time the PBOC has followed the Fed’s lead. In 2017 and 2018, the bank raised short-term money rates hours after U.S. hikes, although in more modest and symbolic moves of 5 to 10 basis points. While Chinese officials continue to downplay the likelihood of more aggressive easing, the economy has been slow to respond to … [Read more...] about Fed easing could prompt first China rate cut in four years
Quantitative easing 2018
By WSJ Thu., Feb. 28, 2019 This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. The U.S. and China are getting closer to a trade deal, business and consumer sentiment are looking a little emotional, and we finally get a look at full-year GDP. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments or suggestions by replying to this email. GETTING CLOSER U.S. Trade Representative Robert Lighthizer said the U.S. was abandoning for now its threat to raise tariffs to 25% on $200 billion of Chinese goods, the strongest sign yet that a trade accord is near. The threat of higher tariffs had shaken world markets and forced U.S. businesses to consider moving operations out of China—while also pressuring Beijing to negotiate a cease-fire, Bob Davis and William Mauldin report. Mr. Lighthizer said that the U.S. and China reached a … [Read more...] about Real Time Economics: Did the Economy Grow 3% in 2018?
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | The Hot Topic in Markets Right Now: ‘Quantitative Tightening’ Supported by It’s not China. It’s not the shutdown’s aftermath. The latest obsession occupying the minds of investors is the Fed’s plan to reduce the stockpile of bonds it bought during and after the Great Recession. ByMatt Phillips Jan. 30, 2019 Anyone paying attention to financial markets in recent months knew that the Federal Reserve’s management of the economy was perhaps the single most important question on the minds of investors. The Fed, of course, has been raising interest rates, including four increases last year, which unnerved many investors. These days, though, the focus has shifted to what the central bank will do with another tool it previously used to stoke economic growth. As part … [Read more...] about The Hot Topic in Markets Right Now: ‘Quantitative Tightening’
Central banks risk triggering another wave of volatility on markets by draining $1.2 trillion (£930bn) from the global financial system, top analysts have warned. The Federal Reserve is sucking liquidity out of the system by reversing quantitative easing (QE) amid fears that December’s volatility was sparked by the US central bank removing the bond-buying stimulus. Wall Street analysts at Morgan Stanley have warned that reversing QE “played an important role in the late 2018 market volatility”, predicting that the Fed will be forced to end quantitative tightening (QT) later this year. The Federal Reserve is sucking liquidity out of the system by reversing quantitative easing amid fears that December’s... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium article … [Read more...] about Quantitative easing reversal to suck $1.2 trillion from global financial system
Upon addressing the event, VEPR President Nguyen Duc Thanh briefed participants on the review of both the global and Vietnamese economy during the fourth quarter and throughout the entire year 2018. According to the report, 2018 witnessed an uneven and unsteady recovery for the global economy. Indeed, many international organisations continuously lowered their forecasts. The latest estimates show that economic growth in 2018 for the world’s economy was about 3.7 per cent. However, differences remained in growth trends between different country groups and even among countries in the same groups. Concerns regarding China's economy continue to grow as its trade and investment growth is expected to carry on its decline due to trade tensions with the United States showing no signs of dissipating. Whilst China's PMI has dropped below 50, the People's Bank of China has begun to implement monetary easing to stimulate the domestic economy. Although there is still room for fresh … [Read more...] about Vietnam Quarterly Macroeconomic Report -Fourth Quarter 2018 unveiled