HELSINKI (Reuters) – Italy is unlikely to clash with the European Union over its draft budget for next year because the new government in Rome is more likely to play by EU fiscal rules than the previous one and Brussels does not want it to fail, officials said on Friday.
TOKYO (Reuters) – Stable markets and resilient domestic demand could help the Bank of Japan withstand pressure to expand an already massive stimulus program when policymakers meet next week in the wake of the European Central Bank’s monetary loosening.
Investors around the globe are bracing for a second rate cut from the U.S. Federal Reserve at its policy-setting Federal Open Market Committee on Sept. 17-18.
The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations.
At an informal meeting of euro zone finance ministers in Helsinki on Friday, Greek Finance Minister Christos Staikouras presented his plan to repay earlier about 3 billion euros of IMF loans, which carry a punitively high interest rate of 5.1%.
Adding to the challenges policymakers face, Japan’s core consumer inflation is seen in the poll as slipping to the lowest level in more than two years, largely thanks to weaker energy prices.
The government of the anti-establishment 5-Star and the far-right League, which quit the coalition in August, had set a target of raising 18 billion euros ($19.93 billion) this year from the sale of public assets.
1. China encourages trade hopes
A cut in banks’ reserve requirement ratio may also come this month or in October, with a reduction possible at the Sept. 26 rate meeting, Diokno told reporters in Tarlac province north of the Philippine capital on Friday.
NEW YORK (Reuters) – With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn.