Bank of England left interest rates unchanged at 0.1% and increased its QE bond-buying program by GBP100 billion for supporting the economy.
MPC report told downside for global outlook remained and votes are against cutting rates, BOE expects negative interest rates.
UK Q2 GDP comes in less severe than expected and GDP contracted by 20% in April and fall in 6% in March, hereafter GDP shows recovery path in future.
UK government bonds (gilts) yields surge higher after the BOE announced bond-buying QE program, but BOE expects negative interest rates in future days.
USD Raised more against INR due to India, China Combat
CORONOVIRUS infections are increasing more in one part of the country, another side China and India border tensions increases.
US dollar raised more against Indian rupees due to combat between China and India, the line of actual control takes place in Himalayan mountains.
After the news nifty 50 index at risk, news reports show 20 Indian soldiers killed and Chinese soldiers only provoked an attack as per Delhi officials reported. This type of conflicts happened since the 1970s now again restarted the same combat between soldiers.
This type of fight creates Beijing to chance for more troops to send in high altitude points and India also send military troops caution set in the border and high-altitude points, china had a chance to involve in New Delhi’s border infrastructure developments from this border issue.
India’s strong response to China due to china’s work on Hongkong, south china sea and tensions with Taiwan.
China’s Beijing shows more infections of COVID 19 and India stands behind Russia, now economy worsens due to pandemic.
If war starts between India and China, it will result in a great recession since 1970 for both these countries.
Let’s wait and see how china going to handle this issue including the worldwide pressure due to virus spread.