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Surprise! Serial thunder! Europe explodes, America explodes! Another central bank can't hold up to cut interest rates!

iconFeb 15, 2019 19:08

From 2019 to now, the world economic situation has not only not improved, but also bad news has been passed on frequently. SMM2 15-month news: 2019 so far, the world economic situation has not improved, but also the bad news.

 

In addition, the economic situation of Germany, the leader of the euro zone, is worrying, with a month-on-month ratio of-0.2% in the third quarter and 0 in the fourth quarter, which is almost recognized as a technical recession. Italy in the third quarter of the euro zone compared with-0.1% in the third quarter. The fourth quarter-on-month ratio of-0.2%, has entered a technical recession, and the previous budget crisis is still vivid, once ignited the collapse of European stocks. The release of GDP in the UK on February 11th was also surprising, with GDP growth in 2018 at its slowest pace since 2012.

 

Then the December retail sales figures released in the United States yesterday showed that the growth rate was-1.2%, the biggest decline in more than nine years. Cudlow, director of the U. S. Economic Commission, said the retail sales figures were affected by the government shutdown. Federal Reserve Governor Bernard Brainard acknowledged the increased downside risks to the US economy and made clear for the first time when the contraction would end, saying he expected to end the contraction by the end of 2019. The Fed's weakness again heightened concerns about the U. S. economy, and JPMorgan cut GDP growth to 2.0% in the fourth quarter of 2018, from 2.6%. Barclays also cut its fourth-quarter GDP growth forecast to 2.1 per cent from 2.8 per cent, Goldman Sachs cut its forecast to 2.0 per cent from 2.5 per cent, and the Atlanta Fed model showed fourth-quarter GDP growth of just 1.5 per cent! Us GDP reached a 4-year high of 4.2 per cent in the second quarter and 3.4 per cent in the third quarter, meaning GDP growth will fall by 1 per cent to 2 per cent in the fourth quarter!

Another piece of news is that the Bank of Egypt cut interest rates by 100 points, another country to cut interest rates to fend off the downturn after the Bank of India cut interest rates. Earlier, the article mentioned that interest rate cuts were hotly discussed in major economies around the world in February. More economies are expected to join the interest rate cuts in the future, especially in countries with high debt ratios and poor economies. As a reminder, cash is king in the economic downturn.

The euro zone
Germany
the United States
cut interest rates.

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