Global News
Euro-area growth outlook – The European Commission has cut its euro-area growth and inflation forecasts for 2020, amid global tensions and trade uncertainty. The Commission warned that the resilience shown by the area so far will not last forever, and they see economic momentum remaining subdued through to 2021. Euro-area growth is forecast to expand 1.2%, with inflation projected to be 1.3%, well below the European Central Bank’s (ECB) target of just below 2%.
Bank of England rate decision – The Bank of England has chosen to keep UK interest rates at 0.75%. The Monetary Policy Committee (MPC) voted 7-2 to keep rates the same, which is the first time since June 2018 that the MPC has been split. Two members voted to reduce the base rate to 0.50%, however, the majority felt that the UK is strong enough economically for now to hold rates.
US-China trade talks – The Chinese Ministry of Commerce spokesman, Gao Feng, announced that the US and China are to rollback tariffs in stages that the two countries imposed on one other during the trade war, as they work towards a “phase one” deal. The number of tariffs to be removed is to be negotiated, and there was no timeline provided. However, it is showing that the talks that have been going on for two weeks between the parties are constructive in their nature, and core concerns are being resolved.
