Bank of Canada keeps its benchmark interest rate unchanged at 0.25%, New Zealand's economic outlook is bleak

In Daily Market Review, English
10 9 月, 2020

Bank of Canada keeps its benchmark interest rate unchanged at 0.25%
After the interest rate meeting, the Bank of Canada announced that it would maintain the benchmark interest rate unchanged at 0.25% and continue its weekly quantitative easing government bond purchase plan of at least CAD 5 billion, which is in line with market expectations. In addition, the forward-looking guidance on interest rates reiterated that the policy interest rate will be maintained at the lower limit of the effective interest rate until the idle economy is absorbed and the 2% inflation target can be achieved. The central bank stated that the rebound in economic activity in the third quarter seems to be higher than expected in July. It also pointed out that the monetary policy stimulus needed to support the recovery and achieve the inflation target will continue to be provided in the future until the economic recovery proceeds smoothly.

New Zealand’s economic outlook is bleak
The initial value of New Zealand’s (ANZ) Business Enterprise Confidence Index in September sharply narrowed to minus 26 on a monthly basis, compared to 41.8 in the previous month, reflecting that about 26% of companies forecast a bleak economic outlook. During the period, the business expectation index was negative 9.9%, which was significantly narrowed by 7.6 percentage points from the previous month, reflecting that 9.9% of companies expect their business activities to decline in the coming year. According to the survey, the local epidemic situation is still under control, and the lockdown measures are relaxed to the second level, which will help boost business confidence and help companies get rid of the pessimism of economic recession.

—————————————————————

Z. com Bullion is an affiliate of GMO Financial Holdings, Inc., a Japanese listed group. The risk of loss in leveraged foreign exchange trading & margin trading can be substantial. Visit the company website to read full risk warning. https://bullion.z.com/en/about/legal/risk/

場外式黃金/白銀交易的風險:
场外式黄金/白银交易由 Max Online 提供。 场外式黄金/白银交易涉及高度风险,未必适合所有投资者。 高度的杠杆可为阁下带来负面或正面的影响。 场外式黄金/白银并非受证券及期货事务监察委员会(「证监会」)监管,因此买卖场外式黄金/白银将不会受到证监会所颁布的规则或规例所约束,包括(但不限于)客户 款项规则。 阁下在决定买卖场外式黄金/白银之前应审慎考虑自己的投资目标、交易经验以及风险接受程度。 可能出现的情况包括蒙受部分或全部初始投资额的损失,或在极端情况下(例如相关市场跳空)产生更多的损失。 因此,阁下不应将无法承受损失的资金用于投资。 投资应知悉买卖场外式黄金/白银有关的一切风险,如有需要,请向独立财务顾问寻求意见。