Fed’s Long Hold, BOE Decision Day, Germany’s Recovery: Eco Day

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

  • Fed officials held interest rates near zero and signaled they would stay there for at least three years, vowing to delay tightening until the U.S. gets back to maximum employment and 2% inflation
  • Bank of England policy makers have the opportunity at Thursday’s meeting to signal to investors and economists whether they’re right to predict more monetary stimulus this year
  • Germany’s economy is on the mend but a full recovery will take years, according to Bundesbank President Jens Weidmann
  • Prime Minister Boris Johnson made a key concession on his controversial Brexit law-breaking plan in a bid to get it through Parliament. Meanwhile, Democratic presidential nominee Joe Biden said a U.K.-U.S. trade agreement depends on continued respect for the Northern Ireland peace process, a warning to Johnson over his Brexit strategy
  • The Bank of Japan took a less pessimistic view of the economy while leaving its aggressive monetary stimulus untouched, a day after Yoshihide Suga took over as prime minister
  • A $1.4 billion hedge fund has identified which central bank is likely to be the most hawkish after the Covid-19 crisis
  • Russia’s rate-cutting cycle may be at an end after a wobbly ruble helped boost inflation and the economy has shown signs of recovery
  • President Donald Trump said he’s open to more stimulus spending for pandemic relief in stalled talks with Democrats
  • Employees at the U.K.’s largest firms are about to find out if the government’s controversial decision to end its furlough has cost them their jobs
  • The number of countries suffering debt distress is increasing because of the pandemic, and more creditors need to consider cutting nations’ debt stock to prevent “lost decades,” the World Bank said
  • An unprecedented economic recovery plan set to be unveiled by South African President Cyril Ramaphosa focuses on fighting graft, encouraging mining investment and boosting infrastructure investment

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