BOE Decision Day, Italy's Woes, India's Surprise Cut: Eco Day

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

• It’s Bank of England rate decision day. Read our guide on what to expect
• Italy’s government is falling short on needed reforms while annual economic growth is projected to stay below 1 percent through 2023, the IMF says
  • That makes it likely the European Commission cut Italian growth forecasts today as well, according to Italian papers
• Romanian borrowing costs are set to remain unchanged as the central bank complains that surprise tax measures to shore up the budget are restricting its ability to function
• The Czech central bank will probably keep borrowing costs unchanged for a second meeting, prolonging a pause in rate hikes to digest signals of a potential economic slowdown in the euro area
• President Donald Trump nominated senior Treasury official David Malpass to lead the World Bank, choosing a loyalist who has been sharply critical of China and has called for a shakeup of the global economic order
• Federal Reserve Chairman Jerome Powell gave a brief but positive assessment of the economy at an event organized for educators
  • Former Federal Reserve Chair Janet Yellen said the U.S. central bank must rely on incoming economic data to determine if its next policy move will be up or down, likening the current moment to 2016 when she kept interest rates on hold almost all year
• The surge in U.S. shipping costs last year amid the tightest freight market in over a decade has now subsided, according to a gauge produced by an industry research firm
• New Zealand’s jobless rate rose more than expected, adding to signs that the labor market isn’t generating inflation pressure
• India’s central bank unexpectedly cut its benchmark interest rate and dumped its hawkish stance, as slowing inflation allowed policy makers room to support the government in spurring economic growth
• Brazil kept interest rates unchanged and signaled Congress needed to approve cost-cutting measures before borrowing costs can fall

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Henry Hoenig

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