ADVERTISEMENT

Central Bank Caution, Game Theory's Trade War Lessons : Eco Day

Central Bank Caution, Game Theory's Trade War Lessons : Eco Day

(Bloomberg) -- Welcome to Thursday, Americas. Here’s news and analysis from Bloomberg Economics to help get your day started:

  • The Bank of England is set to hold its policy today, following the Swiss National Bank which indicated that it’s in no rush to tighten given an escalation of global risks
  • Bosses of the world’s most powerful central banks, gathering in Sintra, Portugal this week all agreed that trade tensions have clouded the economic outlook -- and game theory suggests a full blow trade war could follow
  • Even so, with low unemployment, near-ideal inflation and balanced risks to the outlook, the Federal Reserve’s chief says there’s still a strong case for gradual interest-rate hikes
  • Bank of Japan Governor Haruhiko Kuroda backs 3 percent annual raises in employee wages to help the central bank meet its inflation target
  • U.S. President Donald Trump met with Republican lawmakers but reached no agreement on how to deal with China’s ZTE, which Congress is pushing to cut off
  • The International Monetary Fund board officially stamped Argentina’s $50 billion credit line, the biggest in the Fund’s history
  • China says more reserve-ratio-requirement cuts are in store to boost credit supply to smaller companies; here’s what the central bank could do next

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net

©2018 Bloomberg L.P.