SHANGHAI, Feb. 29 (SMM) – Relevant parties released a joint statement after the G20 Finance Ministers and Central Bank Governors meeting just concluded. According to the statement, global economy is facing greater downward risks and vulnerability; central banks will use all policy tools available, including monetary and fiscal policy, as well as structural reform policy, to ensure growth target.
There is a high possibility that the euro zone and China will loosen monetary policy further after Japan introduced negative interest rate. The US Fed intends to adjust rate hike frequency so as to ensure sufficient liquidity for US economy.
US non-farm payrolls and jobless rate point to US economic recovery, but other economic data, including manufacturing and service PMI and inflation, are disappointing.
The US, Europe and China diverged from each other in manufacturing PMI. China is still struggling in contraction territory, while the euro zone has bottomed out, and the US is heading toward contraction territory. China’s new RMB lending hit a record high in January, a sign of the government’s efforts to boost economic growth.
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