Overseas Headlines – August 3, 2020

United States:

Fed’s Kashkari Urges Congress to Act, Suggests Fresh Lockdown

“The surging U.S. savings rate means the country can afford to support Americans laid off due to the coronavirus pandemic, while a “hard” lockdown could deliver a faster economic recovery, a senior Federal Reserve official said on Sunday. Federal Reserve Bank of Minneapolis President Neel Kashkari told CBS’s “Face the Nation” that Americans are saving more because they aren’t going out as much during the pandemic, and as a result there would be less need to borrow from abroad to finance additional fiscal aid.”



BOE to Keep Backing Stimulus Even as Splits Emerge on Economy

“Bank of England policy makers are set to keep delivering ultra-loose monetary policy even as they disagree over the pace of economic recovery from the coronavirus-triggered recession. While officials led by Governor Andrew Bailey have different takes on how the economy is emerging from the pandemic shock, the next policy decision on Thursday is expected to leave interest rates at a record low and the asset-purchase program unchanged.”



Japan’s Economy Shrinks at Same Pace in 1Q as Capex Holds Up

“Japan’s economy shrank at the same pace as previously estimated in the first quarter, according to a further revision of data that continued to show the country was in a recession before the pandemic took its heaviest toll. Gross domestic product shrank an annualized 2.2% in the first quarter compared with the final three months of 2019, the Cabinet Office reported Monday, with business investment showing more resilience than expected.”



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