This Week's State Of The Economy - What Is Ahead? - 31 January 2020

Date: 01 February, 2020 | By : 

Global Review - Central Banks on Hold; Mexico’s Economy Struggling  

  • This week, both the Bank of England and Chilean Central Bank opted to keep policy rates unchanged. Political developments have weighed on both economies, with Brexit complications creating mixed sentiment towards the UK, while social unrest is hurting economic activity in Chile. As of now, we expect both central banks to stay on hold, but acknowledge the dovish language from each set of policymakers.
  • Mexico’s economy has slowed notably over the last year, with the economy contracting again in Q4, indicating a full-year contraction for 2019. Growth prospects for 2020 remain dim as political uncertainty weighs on the country’s outlook.


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