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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
BoE minutes: BoE officials favour interest rate cut, if required
Minutes of the BoE’s latest meeting showed that it has options to cut interest rates further and elevate asset purchases to help lessen the economic shock of the coronavirus outbreak. Moreover, officials indicated that risk appetite in global financial markets has deteriorated substantially, reflecting an escalation of concerns over the impact of Covid-19.
German CPI climbed as expected in February
In Germany, the final consumer price index (CPI) climbed 0.40% on a MoM basis in February, meeting market expectations for a rise of 0.40%. The CPI had fallen 0.60% in the previous month.
US consumer sentiment index dropped in March
In the US, the preliminary Reuters/Michigan consumer sentiment index registered a drop to a level of 95.90 in March, higher than market expectations of a drop to a reading of 95.00. In the prior month, the index had registered to a level of 101.00.
Fed lowers its key interest rate to near zero, launches $700.00 billion quantitative easing program
The US Fed, in an emergency move, slashed its key interest rate to a target range of 0.00% to 0.25% from 1.00% to 1.25% and pledged to keep the interest rate steady until it is confident that the economy has recovered from impact of coronavirus pandemic. Additionally, the central bank launched a massive $700.00 billion quantitative easing program to shelter the economy from the effects of the virus. However, Fed Chairman, Jerome Powell, stated that the epidemic was having a deep impact on the economy, forcing whole industries like travel and leisure offline and it’s very hard to say how big the effects will be or how long they will last.
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