Federal Reserve chairman Jerome Powell stated yesterday that interest rates are not expected to increase this year as the American economy is slowing.
During a news conference, the Fed chairman said, “we continue to expect that the American economy will continue to grow at a solid pace in 2019, although likely slower than the very strong pace of 2018.”
The Fed has now forecasted that growth is expected to be at 2.1 percent this year, which is a decrease from the 2.3 percent forecast from December, and even lower than the 3.2 percent expected growth predicted by the White House.
The European Union,
according to an EU official, will most probably give Britain a chance to decide
whether to extend Brexit until 2020 by the middle of April.
The news comes ahead
of a summit to take place in Brussels on Thursday, during which Theresa May is
likely to receive an ultimatum that will give Britain “just three weeks to decide whether to gamble on
getting the current Brexit deal through British Parliament by July,” according
As Theresa May seeks
to delay Brexit after parliament rejected the withdrawal deal she brought back
from Brussels on two occasions and a third vote has been ruled out, the Pound
is considered to be cheap, according to Merian
Global Investors Ltd.
The asset management experts
behind the investment firm said today that the Pound is a “bargain” and that it
may strengthen to $1.45 once the Brexit situation begins to show some clarity.
The Pounds was at $1.3267
during the early morning hours in London today.
The Pound strengthened
against all of its Group of Ten associates this year.
Governor of Australia’s Central Bank, Philip Lowe, gave a speech last night to the House of Representatives Standing Committee on Economics. In this speech, he mentioned that the forecast for GDP growth this year is at 3 percent, while unemployment is expected to decrease to 4 ¾ percent over the next couple of years. He also said that inflation is expected to be at 2 ¼ percent by the end of 2020.
The overall forecast for 2019 is for growth of around 3 percent, inflation to be at around 2 percent and unemployment is expected to be at around 5 percent.
The Australian Bureau of Statistics announced yesterday that in January 39,100 new jobs were created – more than double the number that was expected.
The unemployment rate for January stood at five percent, the lowest percentage in six and a half years. These figures prove that the Australian economy is going from strength to strength.
Even as this is the case, the leading Australian bank Westpac, has set out its monetary policy view, believing that the reserve bank of Australia will lower the benchmark interest rate later this year.
The latest on Brexit subject is that the Spanish Foreign Minister, Josep Borrell, has told Bloomberg that there is progress being made. This may shine some light in the tunnel, bringing hope that the outcome of Theresa May’s meeting tonight with European Commission President Jean-Claude Juncker may be a positive one.
This meeting is a continuation of yesterday’s meeting between the two, after which May said “we’ve agreed that work to find a solution will continue at pace. Time is of the essence, and it’s in both our interests that when the U.K.
The rise of 2.6 percent in
producer prices for industrial products in January 2019 as compared to January
2018 in the German market, as revealed by the Federal Statistical Office of
Germany, may be a positive sign for the Euro.
The report went on to say
that compared with December 2018, the overall index increased by 0.4 percent in
January 2019. Comparing the price indices of all main industrial groups from January
2018 to January 2019, the report shows an increase in prices. Specifically,
energy prices rose by 7.2 percent.
After seven Labour MPs quit the party, May’s own party tried to persuade her to take the threat of a no-deal divorce off the table, and the announcement that Honda’s Swindon plant is expected to close down yesterday, things are not looking so good on the Brexit front.
Today the latest is that U.K. and European officials are working on a new legal text surrounding the Irish border backstop arrangement.
The financial and political world have all eyes on the U.K. as the runup to Brexit is getting nearer and nearer. The constant back and forth from London to Brussels, the debates in the British parliament and the British economy have all taken up space on our daily newsfeeds.
The latest news from the U.K. economy is the first release of the Rightmove House Price Index for the year. The collected data – which provides a look into the strength of the U.K. housing market and the economy as a whole - shows that home-movers remain active.
With only six weeks left
until the official Brexit date, the U.K. is now set to compromise on its
demands for a re-write of the Brexit agreement, according to Bloomberg.
In latest Brexit news, the government
is reducing its changes to the Irish border backstop arrangement and it will
not push for a reopening of the withdrawal agreement. This new stand could help
ease things out with Brussels, but it “risks making the agreement more difficult to sell to members of
Parliament in London,” Bloomberg states.