“The bank is increasingly anxious about the impact that low oil prices will have on the economy, having trimmed their growth forecasts for mainland GDP for 2016 and 2017”, said economist Colin Bermingham from BNP Paribas. “The Board has therefore made a decision...
That dilemma was compounded by “the (domestic) combination of sharply slowing growth and rising inflation“, bank Governor Lesetja Kganyago told a news conference after it cut its 2015 economic growth forecast to 1.5 percent from 2.0 percent.
Mike van Dulken, head of research at Accendo Markets, said investors are feeling uneasy after the Fed highlighted “concerns about external factors such as China, market volatility and deflation derailing a [U.S.] recovery”.
There are only two more meetings left for the Fed this year – in October and December – and it’s likely that the Fed might want to see a few more employment reports and monitor the Chinese markets before making the decision.
Over the next month the market’s “fixation is going to shift” away from Fed lift-off talk, he says, and toward figuring out how the US and global economy is doing and what the outlook is for third-quarter corporate earnings.
BANK OF JAPAN: Japan’s central bank was wrapping up a two-day policy meeting on Tuesday, with most economists expecting it to retain its current, ultra-lax monetary policy. China’s Shanghai Composite Index fell 3.5 percent to 3,005.17. It appreciated 0.7 percent to...
Asian stocks mostly rose Friday, perked by relief that the U.S. Federal Reserve held off on raising interest rates for the time being, but European markets faltered as some investors interpreted the Fed decision as a sign of economic weakness.