“Global Times” said China may gradually reduce its holdings of US debt
China’s “Global Times” quoted a Shanghai University professor last Thursday (3rd) as saying that if Sino-US relations continue to be tense, China may gradually reduce its holdings of US debt. However, the article did not specify a timetable. In fact, if Sino-US relations continue as they are now, I believe everyone can imagine that sooner or later the central government will be forced to reduce its holdings of US debt. But this time it was proposed by the “Global Times”, which made everyone more aware of the seriousness of the situation and that the relevant situation may have occurred earlier.
This week the European Central Bank and the Bank of Canada will discuss interest rates
In addition to the European Central Bank’s interest rate meeting, the Central Bank of Canada will also discuss interest rates this Wednesday. Maintaining the interest rate unchanged at 0.25% is expected by the market. However, in response to Fed Chairman Powell’s “average inflation target” at the World Central Bank Bankers’ Meeting at the end of last month, the market estimates that at the central bank’s interest rate hike meeting this week, the Canadian central bank may also change its inflation target to follow suit the pace of the Fed. If the Bank of Canada really takes action, it will not rule out putting pressure on the Canadian dollar. Because this will mean that local inflation can return to 2% a day, and the Bank of Canada will not stop its loose monetary policy. It is recommended that investors who are interested in the Canadian dollar pay close attention to the interest rate hike meeting of the central bank this Wednesday.
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