Germany Ifo export expectations dropped sharply from -1.1 to -19.8 in March. That is the sharpest decline since reunification, and the lowest level since May 2009.
Ifo President Clemens Fuest warned, “The corona pandemic is slowing global trade. Cross-border logistics is becoming more difficult. Germany as an export nation is particularly affected.”
Export expectation dropped in almost all industrial sectors, with auto industry particular hard hit. Outlook is also “bleak” in mechanical engineering, textile and clothing. A “comparatively moderate decline” was see among electrical equipment and chemicals.
BoJ Kuroda: We are not debating an interest rate hike
In the post meeting press conference, BoJ Governor Haruhiko Kuroda said, “consumer inflation is likely to stay around 1% through the end of the BoJ’s projection period. As such, there is no need to modify the BoJ’s monetary easing.”
“We are not debating an interest rate hike … As shown in the report, we’re not yet in a situation where inflation is steadily accelerating toward the BoJ’s goal. The median forecast of board members is for inflation around 1%. Under such conditions, we are absolutely not thinking about raising rates or modifying our easy monetary policy,” he said.
“If achievement of 2% inflation comes into sight, the BoJ’s board will likely debate an exit strategy and communicate its intention to markets. That in itself won’t be that difficult. The problem is that unfortunately, we haven’t see inflation hit 2%. It’s premature to debate an exit strategy,” he added.