RBA Governor is bullish on the Australian dollar
Australian Central Bank governor Lowe delivered a speech at an open forum saying that the central bank has no reason to change the current monetary policy framework, and interest rates may remain low regardless of any purpose. On the job market, it believes that targeting the unemployment rate is meaningless because the labor market is more complicated than this simple indicator. Regarding the recent trend of the Australian dollar, Lowe pointed out that it is difficult to find that the Australian dollar is overvalued at the current level, but the lower exchange rate will help to increase inflation. The comments suggest that it is not overly concerned about the recent increase in the Australian dollar. Lowe said Later the Australian dollar was clearly supported.
Rating agency Moody’s may lower the sovereign credit rating of rich countries with higher debt levels
Rating agency Moody’s published an outbreak that caused economic slowdown and fiscal damage to 14 wealthy countries around the world, including the United States, Japan, Italy, and the United Kingdom. It is expected that the proportion of government debt to GDP will increase by about 19% on average . Among them, Italy, Japan and the United Kingdom are expected to have the largest increase in debt, equivalent to about 25% of their respective GDP. As for the United States, France, Spain, Canada and New Zealand, the growth rate may reach 20%, and the relative damage is almost twice that during the financial crisis, which fully reflects the severity and breadth of the epidemic impact. Moody’s said that failure to reduce debt levels would make it more difficult for countries with weak credit conditions to withstand future economic or financial shocks, and sovereign credit ratings may also be lowered.
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