The Day at a Glance | August 26 2021

Intercam News
26 agosto, 2021, 3 años ago
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The Top

*ECB meeting minutes reveal that there was an intense debate between members regarding the message sent in the most recent monetary policy meeting.

*Unemployment in Mexico increased slightly to 4.1% during July (seasonally adjusted figures; 4.4% original), the ENOE revealed.

*US GDP for the 2Q21 was slightly revised upwards (6.6% vs 6.5% prev.).

*Esther George (Kansas City FED) considers that the withdrawal of stimuli should start soon, despite the risk that the Delta variant poses for the recovery.

*China assured that it maintains normal communications with the US concerning trade, despite the fact that the 2019 trade agreement`s goals are far from being reached.

*A current account surplus worth 1.9% of GDP was logged in Mexico during the 2Q21; according to figures made public by Banxico regarding the balance of payments.

Economic environment

Disagreement in the ECB regarding the message it sent to markets. The European Central Bank`s latest meeting minutes revealed that long and intense discussions were had among the members concerning the message sent in its latest statement, particularly regarding the future of its monetary policy. On July 22nd, the ECB made a statement in which it pointed out that interest rates would remain unchanged for a longer period of time, and that the central bank would be more tolerant of a rise in inflation. However, the meeting minutes showed that there is no full support within the Governing Board. The statement was corrected up to two times after its members had tense discussions and before the statement was made public; even so, some members were dissatisfied with the bank`s communication. German and Belgian central bankers opposed the ECB`s “stimuli for a longer period of time” message the most, a sign that there are strong opposing views that go against a stance that is tolerant of inflation. On September 9th, the ECB will have its next meeting, and discussions regarding the future of the region`s purchasing program will resume.