Global News
Global growth forecast – The Organisation for Economic Co-operation and Development (OECD), a Paris based intergovernmental economic organisation, cut their forecast for global economic growth this week. Just four months ago, the outlook for global growth was forecast at 3.2% for 2019, which has now been downgraded to a projected 2.9%. The OECD also warned that a no-deal Brexit would push the UK economy into a recession.
Saudi Arabia oil attack – Over the weekend, Saudi Arabia’s major oil facilities were set alight through the use of a drone. The attacks on the site wiped out 5% of the world’s oil supply, with an estimated 5.7 million barrels a day of production being lost, which in turn sent the price of oil soaring 20%, making the biggest one day gain ever recorded. Saudi Aramco, the owners of the facilities, could take weeks to restore the levels back to where they were pre-strike.
Central banks – The Bank of England (BoE) kept its key interest rate at 0.75% this week. The Monetary Policy Committee voted unanimously in favour of holding it at the current level, however, the BoE hinted that they may seek to cut rates if Brexit uncertainty continues as the global economy weakens. The US Federal Reserve cut interest rates by 25 points for the second time this year, bringing the interest rate range to 1.75-2.00%. This cut was in line with investors’ expectations, but the Federal Reserve signalled that it could stop the cuts there, despite pressure from the White House.
