U.K. Austerity Fallout, Hungary Rate, Africa Divergence: Eco Day

(Bloomberg) --

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Britain’s decade of austerity is coming to an end as politicians pursue an arms race of spending pledges before next month’s election. For the 90,000 or so people of Hartlepool, relief will be too late. Just yesterday, Prime Minister Boris Johnson unexpectedly announced that the Conservative Party is putting plans to cut the tax rate on company profits on hold
• Hungary’s central bank is set to hold fire on interest rates, looking past the forint’s plunge to near a record low against the euro as loose monetary policy continues to help fuel robust economic growth
• Central banks in key sub-Saharan African economies are expected to diverge on policy when they make interest-rate calls in the next week as some seek to tame inflation and others to boost growth
• Rising concern about the damaging side effects of ultra-low interest rates means fiscal policy could play a more prominent role in combating Japan’s next downturn. We take a look inside Governor Haruhiko Kuroda’s Bank of Japan.
• Federal Reserve Chairman Jerome Powell met with Trump and Treasury Secretary Steven Mnuchin to discuss the economy, the second face-to-face sit-down this year amid relentless White House criticism of the central bank
• Fed Bank of Boston President Eric Rosengren warned against putting financial stability at risk in pursuit of higher inflation
• With the trade war forcing tech suppliers to rethink their reliance on China, Taiwan sees a chance to revitalize its economy as a center for advanced manufacturing
• Flight disruptions, fewer tourists, lost work hours and missed school days have come to portray New Delhi’s struggles with toxic air quality. The intangible costs may be adding up for India’s economy
• A surge in the number of people who can’t pay their debts is raising eyebrows in Canada

To contact the reporter on this story: Michael S. Arnold in Singapore at marnold48@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael S. Arnold, Michelle Jamrisko

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