Summary for the 20th of September


The Bank of Japan keeps its monetary policy unchanged while indicating further expansionary policy in the future. Swiss National Bank has downward adjusted its growth and inflation outlook while keeping the interest rate unchanged at -0.75%.

Bank of England also keeps the interest rate unchanged at 0.75%. The central bank says that the underlying growth of the British economy has slowed, and excess capacity has opened within companies. Exports and investments are weighted down by weaker global growth and Brexit uncertainties, respectively. Growth in consumer spending remains resilient due to an increase in real household income. The fiscal policy for 2020 to 2021 is expected to increase the economic growth by 0.4% in the upcoming years.

If the Brexit deal goes smoothly, and with some recovery in global growth, the central bank judges that it will increase the interest rate at a gradual pace. In the event of a no deal Brexit, the monetary policy response would be in either direction.

The European Commission President, Jean-Claude Juncker indicates while on Sky News that Brexit will happen, and that there will be a deal made. He says he is prepared to remove the back-stop deal if Boris Johnson has alternative arrangements allowing both parties to achieve their main objectives.

Indices for 20th of September
Dow: -0.2 % (19th of September)
S&P 500: Unchanged (19th of September))
Nasdaq: +0.1% (19th of September)
Nikkei: +0.1%  (20th of September)
Chinese indices: +0.2% (20th of September)
STOXX Europe 600 Index: +0.29% (20th of September)

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