NBK cuts interest rates on medium-term loans from 3.15% to 2.95%
US stops funding WHO
US production may fall by a quarter
On Wednesday, the People’s Bank of China decided to reduce the interest rate on medium-term loans for a period of one year from 3.15% to 2.95%. Thus, the regulator continues to implement measures to stimulate the economy after a sharp decline as a result of the spread of the coronavirus pandemic. At the same time, experts say that this is not the last interest rate cut this year. By the end of 2020, the regulator may reduce the rate by 100 points. Also today, the NBK poured 100 billion yuan into the country's financial system through medium-term lending programs.
Donald Trump announced the termination of funding for WHO. The US president has commissioned an investigation into negligence of measures against coronavirus by WHO officials. According to Trump, the organization was not able to adequately respond to the first signals about the ability of the virus to be transmitted from person to person. Trump believes that WHO should have called China to account for misrepresenting the virus and spreading it. The White House reports that funding will be stopped immediately.
Goldman Sachs experts reported that the US manufacturing sector faced the worst decline in production since the end of World War II. According to the bank, in March US production fell by about 15%. Analysts predict a further decline in this indicator against the backdrop of quarantine measures. It is expected that in April, production may decline by a quarter.
News worth paying attention to today:
12:30 GMT. USA: March Retail Sales Report
13:15 GMT. USA: March Industrial Production Data
14:00 GMT. Canada: Bank of Canada Interest Rate Decision
14:30 GMT. US: US Department of Energy Weekly Report
15:15 GMT. Canada: Bank of Canada press conference
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