PBOC Slashes Loan Rates, S&P Report Warns of Soaring APAC Unemployment By Investing.com


By Gina Lee

Investing.com – S&P Global Ratings warned in a report that unemployment rates could rise well over 3 percentage points as the number of jobs shrinks.

The People’s Bank of China cut its one-year rate to 3.85% and its five-year rate to 4.65%, its second cut in 2020.

Japan attempts to pass an increased economic stimulus package, and New Zealand reported a better-than-expected consumer price index. 

 

Asia Pacific

A S&P Global Ratings report warned that unemployment rates in Asia-Pacific could soar well over 3 percentage point as social distancing measures slashes job creation.

“Surging unemployment in Asia-Pacific would mean a shallower recovery once the pandemic is contained and, in some economies, credit stress for leveraged householdsHistorical data show that jobs lost are not easily won back,” Shaun Roache, S&P Global Ratings Asia-Pacific chief economist, said.

China’s central bank cut its to 3.85% from 4.05%. The People’s Bank of China also cut its five-year rate to 4.65% from 4.75%.

This is the second time this year that the PBOC has cut its rate so far this year.

Japanese Prime Minister Shinzo Abe aims to pass a JPY 117.1 trillion ($1.088 trillion) economic stimulus package.

The package was boosted from JPY 108.2 trillion by expanding cash payouts.

New Zealand announced a quarter on quarter of 0.8% for the first quarter of 2020. This exceeded analyst forecasts of 0.4% prepared by Investing.com.

The country will also announce whether to extend or loosen its lockdown later in the day. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like...