United States:
Fed’s Near-Zero Rates to Last into 2023, Economists Predict
“The Federal Reserve may hold interest rates near zero for three or more years, and its balance sheet will soar above $10 trillion as policymakers seek to revive the U.S. economy from recession, economists said in a Bloomberg survey. Just over half the 31 respondents to an April 20-23 poll predicted the target range for the federal funds rate, now at 0-0.25%, won’t move up until at least 2023. Another 22% said not before 2022.”
Europe:
Germany Braces for Worst Economic Slump in Its Post-War History
“Germany expects the fallout from coronavirus to lead to the worst economic contraction since the country began its recovery in the aftermath of World War II. Gross domestic product is forecast to shrink by 6.3% in 2020, a deeper plunge than even during the financial crisis a decade ago, Handelsblatt reported citing Economy Ministry projections due to be presented next week. The low point of the recession — the worst since at least 1950 — is expected in April, before a gradual stabilization, according to the daily newspaper.”
Asia:
China Cuts Another Policy Rate, Replaces Some Maturing Loans
“China’s central bank rolled over some of the targeted funds due Friday while cutting interest rates on the loans, the latest in a string of measures aimed at ensuring sufficient liquidity. The People’s Bank of China injected 56.1 billion yuan ($7.9 billion) into the banking system via the targeted medium-term facility, just as 267.4 billion yuan of the debt comes due. The one-year funding was offered at an interest rate of 2.95%, lowered from the 3.15% of the last operation in January. Analysts had expected a cut after the central bank lowered rates on some of its other policy tools to all-time lows.”
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
