Zhu Guangyao: the trend of negative global interest rate threatens the stability of financial market

category:Finance
 Zhu Guangyao: the trend of negative global interest rate threatens the stability of financial market


Zhu Guangyao mentioned that according to the original plan, the Federal Reserve plans to reduce its balance sheet by $430 billion in 2019, but the actual situation is that the Federal Reserve purchases $60 billion of treasury bonds every month from October 15, and this purchase behavior will last at least to the second quarter of 2020, nine months, which means expanding at least $540 billion, and making the balance sheet size of the Federal Reserve return to about $4.5 trillion.

The European Central Bank also reconfirmed its - 0.5% interest rate at its recent meeting. It will purchase 20 billion euros of bonds every month from November 1, and this action will continue until the European Central Bank raises the interest rate; the Bank of Japan will keep the interest rate of - 0.1%.

Zhu Guangyao stressed that in spite of the increasing downward pressure on the global economy, the serious stall of Global trade with only 1% growth, the significant impact of the negative interest rate policy on the global economy and many other challenges, China maintains the general tone of seeking progress in stability, adheres to the six stability, and ensures the stable and healthy development of Chinas economy.