Germany’s central bank cut its forecast of the country’s economic growth rate this year to 2%, from 2.5%. The Bundesbank thinks the “external environment” is driving up uncertainty in the German economy.
Mario Draghi hinted that the European Central Bank could restart its bond-buying programme if economic conditions deteriorate, just days after the bank announced that it would phase out its purchasing of assets. The ECB’s president emphasised that interest rates would remain ultra-low until at least September 2019.
The ECB is to halve the amount of assets it buys each month to 15bn euros ($17bn) from this September and will end all purchases in December.
MSCI, a company that designs stockmarket indices, said that Argentina would return to its emerging-market index in 2019 after an absence of ten years.
That should lower the country’s borrowing costs and increase investment in its stock and bond markets, a boost for Argentina, which is battling a run on the peso and has had to turn to the IMF for help.
Saudi Arabia will also be added to the MSCI emerging-market index for the first time.