The International Monetary Fund (IMF) has cut the growth forecasts for the global economy again. Despite the progress of the trade negotiations between the United States and China and the progress in the Brexit process, the IMF adjusted its forecasts due to the weak performance of the economy of India. Because of the weakened domestic demand last year, the economy of India performed worse than the IMF initially expected. For this year, the IMF forecasts a growth of the global economy of 3.3%, which is 0.1% lower than previously forecasted. For 2021, the IMF adjusted the growth forecasts to 3.4%, 0.2% lower than the last forecast.
The Bank of Japan (BoJ) increases the growth expectations for the Japanese economy. The growth of the economy in the current financial year, which ends in March, is set at 0.8% instead of the previously forecasted 0.6%. The BoJ also increased the forecasts for the next two financial years. For 2020 the forecast is increased from 0.7% to 0.9% and for 2021 from 1% to 1.1%. The increase results from the announcement of the extensive stimulus package of USD 120 billion approved by Prime Minister Shinzo Abe.
Producer prices in Germany increased by 0.1 percent in December compared to the previous month, according to figures published by the German federal statistics bureau. In November prices remained unchanged compared to the previous month.
The 6M Euribor is unchanged at -0.33% compared to previous business day. The 10Y Swap decreased with 1 basis point to 0.14% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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