The Bank of Australia announces to maintain interest rates 0.25%
After the interest rate meeting, the Reserve Bank of Australia announced to maintain interest rates unchanged at 0.25%, while continuing to maintain the target of the three-year government bond yield at 0.25%, in line with market expectations. In addition, the central bank has also decided to increase the scale of the term financing facility to A$200 billion and extend its use period to June 2021, aiming to provide continued funding for companies affected by the epidemic. At present, the financing facility has used about A$52 billion in quota. . The central bank statement reiterated that the economy is in a very difficult period. Despite the difficulties, the economic downturn has not been as severe as previously expected, and most parts of Australia are currently recovering. However, affected by the epidemic, the road to recovery is expected to be bumpy.
The U.S. job market is still shrinking
The American Institute for Supply Management (ISM) manufacturing index continued to rise to 56, higher than market expectations of 54.5 in August. It was a three-month increase and the highest in more than a year and a half. The sub-index of new orders rose to 67.6, the highest since December 2017. As for the employment index, it rose to 46.4, but the figure is still below 50, reflecting that the job market is still shrinking. Although the ISM manufacturing index in the United States has continued to improve, the epidemic has caused expenditures to shift from equipment used in service industries such as restaurants and bars to the purchase of goods such as home appliances, which has polarized business confidence.
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