United Kingdom: Osborne Presents More Budget Measures
The Chancellor of the Exchequer, George Osborne presented more measures in his fifth budget speech. The measures include tax reductions to savers, which are expected to counter the strong expansion of private debt that the country has been experiencing in the last years.
China: China Says Plans To Speed Up Investment, Stabilize Demand
As reported by Reuters, Premier Li Keqiang said China will speed up investment and construction plans to ensure domestic demand expands at a stable rate – this is an indication that authorities are considering practical measures to support slackening economic growth.
Japan: The Bank Of Japan Expects Inflation To Reach 2% Target By End Of 2014 Fiscal Year
Reuters reports that Bank of Japan Governor Haruhiko Kuroda announced that he expects inflation to meet the 2% inflation target between end of fiscal year 2014 and the beginning of fiscal 2015. A better match of supply and demand is expected to contribute positively to this development, while the impact from energy prices on consumer prices is expected to decrease.
Greece: Troika Positive On Greece But Tells Gov’t To Watch Banks And Surplus
Kathimerini reports that on 19 March the troika reached an agreement with the Greek government after nearly eight months of negotiations. The troika appeared to be broadly satisfied with the performance of the country. However, it highlighted the extra capital that the Greek banks need and the issue of this year’s surplus as two key areas that need to be watched closely.
United States: Yellen And The Fed Go Dark
Matthew C. Klein writes for Bloomberg View about the economy and financial markets. In this contribution, he compares the second-to-last full paragraph of today’s statement to the last paragraph of the statement from 29 January. He says “Gone is the so-called Evans Rule, which gave guidance about when the Fed would begin raising short-term interest rates based on a numerical threshold for unemployment.”