Global Economy Update:โ China Exportsโ Contract, BoE Holds Rates, Emerging Markets Mixed
London/Beijing/Santiago/Brasรญlia – The Bank of England held interest โrates steady Thursday, while China’s exports unexpectedly fell in October, โขsignaling continued challengesโ for the global economy. these โฃdevelopments โcome as emerging markets present a mixed picture, wiht Chile seeing economic rebound andโ Brazil’s centralโฃ bank maintaining a tight monetaryโข policy.
Theโค Bank of England’s decision to โคmaintain its current course reflects a cautious approach amid persistent โฃinflationary pressures and a slowing UK economy.Together, China’s export contraction – driven by a slump in shipments to the โฃUS – adds to concerns about weakening global demand and its โคimpact on the world’s second-largest economy, already โคgrappling with โฃdomestic headwinds.
China’s exports โคcontracted in October as global demand โfailed to offset the deepening slumpโข in shipments toโข the US, dealingโ a blow to an economy already slowing amid sluggish consumer spending and investment at home. China’s โcentral bank โresponded withโ a small government bond purchase in October, โits first โsuch operation this year, โas it revivedโ a tool to โsupport the economy.
Across the Atlantic, Chile’s economic activity bounced back in September,โฃ driven byโ gains in โmining and services.The imacec index,a proxy for gross domestic product,rose 0.5% from August,recovering from a 0.7% decline the prior month due โคto a temporary mine shutdown.
In Brazil, the central โbank held its key interest rate unchangedโค at a near two-decade high, expressing confidence that its current tight policyโค will eventuallyโ tame inflation, which it forecastsโค will remain above target until 2027. Central bankers reiterated the need โคfor โcaution given ongoing uncertainty.