Fed Signals 2020 Pause, Lagarde Debut, Turkey Rates: Eco Day

(Bloomberg) --

Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The Federal Reserve left interest rates unchanged and signaled it would keep them on hold through 2020. Bloomberg Economics’ Carl Riccadonna sees it like this: Fed to markets -- see you after the election.
• Christine Lagarde finally has the chance to shake off the shadow of her predecessor on Thursday, at her debut press conference as European Central Bank president.
• President Recep Tayyip Erdogan is taking deeper cuts in Turkish interest rates for granted, and so is the market
• In addition to the ECB and Turkey, there also are rate decisions in Switzerland, Ukraine and Serbia today
• The EU aims to be the world’s first climate-neutral continent by 2050. Getting there will take investment on a scale not seen since the 1970s, writes Bloomberg Economics’ Maeva Cousin
• Brazil cut its benchmark interest rate by half a percentage point to a record low on Wednesday and said it will exercise caution in its next monetary policy decision, leaving the door open for additional easing
• The era of austerity is drawing to a close. After almost a decade marked by stringent controls on the public purse, the pendulum has swung back to deficit spending
• A diamond scandal is hurting India’s economy in the grip of a slowdown

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, James Mayger

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