United States: Fed Set To Ditch ‘Threshold’ Guidance Under Yellen
The Fed is expected to revamp its language regarding forward guidance at the upcoming meeting on March 18-19. The unemployment is approaching the previously established threshold of 6.5% but weakness in the economy remains and the Fed is not yet ready to raise interest rates.
Thailand: The Bank Of Thailand Decreases Interest Rates Record Low
The Bank of Thailand cut interest rates to 2.0%, which represents the lowest value in three years. As stated by the BBC, this decision was motivated by an economic slowdown – particularly a tourism slump – which originated in the political uncertainties brought about by the protest movement against Prime Minister Yingluck Shinawatra.
Spain: Rajoy Plans Tax Reform To Revive Spanish Economy And Jobs
Reuters reports that Spanish government is expected to introduce a new tax reform on Friday. The goal of the new reform is to shift the burden from jobs to consumption. More specifically, the government with increase the value-added tax (VAT) to 21%, but reduce the income and corporate tax for lower earners. This in turn is expected to create hundreds of thousands of new jobs.
Global: Copper Prices Hit Five-Year Low
According to The Guardian, China’s first domestic bond default has shaken the foundations of the copper market, stoking investor worries about the possible unravelling of financing deals that have locked up vast quantities of copper. This anxiety has led to three days of heavy selling in the metal, while having little noticeable effect on other global financial markets.
Chile: Bachelet Sworn In As President
As the BBC Reports, Michelle Bachelet has been sworn in as the president of Chile, her second time in office. The socialist leader was inaugurated in a ceremony in the city of Valparaiso after her election win in December over conservative rival Evelyn Matthei.