1. Kudlow: Trump is not ready to make any commitments
2. The PBC conducts large injections of liquidity in the country's banking system
3. Reserve Bank of Australia may launch QE program in 2020
Today, White House economic adviser Lawrence Kudlow said that the United States and China were close to concluding the first part of the foreign trade agreement, but Donald Trump has not yet approved it. “President Trump positively assesses the current situation in negotiations with China, but is not ready to make any commitments,” said Kudlow. Under this agreement, China is committed to buying American agricultural products, and the United States to repeal the previously imposed trade restrictions.
The People’s Bank of China today injected liquidity into the country's banking system for a total of 200 billion yuan ($ 28.5 billion). The regulator maintains the necessary level of funds in the system by using the medium-term lending mechanism. Earlier, the PBC reduced the interest rate on medium-term loans from 3.3% to 3.25% so that commercial banks reduce the cost of loans for small businesses.
Speaking today at a speech by the representative of the Reserve Bank of Australia, Guy Debbel expressed concern about the problem of timely payments on mortgage loans in some regions of Australia. This creates certain risks for the financial system of the country. Analysts at JPMorgan believe that the Reserve Bank of Australia could make another cut in interest rates this year, and in early 2020 will launch a QE program worth 35-50 billion Australian dollars. Further easing of monetary policy is necessary to achieve targeted economic indicators.
News worth paying attention to today:
10:00 GMT. EU: inflation report
13:30 GMT. United States: October Retail Sales Report