Archives of “May 25, 2020” day

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Bank of Israel holds rates at 0.10%

  
  Analysis

The latest from Israel’s central bank

  • Sees economy contracting 4.5% this year vs 5.3% prior
  • Sees growth of 6.8% in 2021 vs +8.7% prior
  • Inflation forecast at -0.5% this year vs -0.8% prior
  • Sees +0.7% inflation in 2021 vs +0.9% prior
The central bank said it would expand the use of existing tools, including interest rates (negative?) and operate additional ones if crisis lengthens.
I wonder if this is a preview of what’s to come elsewhere. If central banks will start marking up forecasts and stepping towards the sidelines but warning that they will do more if the pandemic worsens.

Japan announces nationwide lifting of state of emergency

  
  Analysis

As announced by Japanese prime minister, Shinzo Abe

  • Japan has managed to bring the epidemic under control
  • The exit from the pandemic is in sight
  • Will lift state of emergency in the country as of today
  • Infections per capita in Japan are low compared to other G7 nations
  • Professional baseball games, concerts to start resuming
This is essentially Abe declaring ‘victory’ over the coronavirus outbreak in the country, as he calls an end to the state of emergency for all of Japan. What is interesting to note is that he is also starting to give the green light for large crowd events i.e. concerts.
I would still argue that this remains a delicate time and there is little room to be complacent. So, it’ll be interesting to see when he will allow this resumption to take place.
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