At a recent press conference, Mario Draghi, President of the European Central Bank (ECB) said that its main interest rates remain at 0.75%. This action is part of the first meeting of the ECB since Draghi pledged to ‘do whatever it takes’ to support the euro.
Official figures from the US Department of Labor reported that 163,000 jobs were created in July, which has been received as positive news that the country is on the right financial track despite the fact that unemployment actually rose 0.1 points to 8.3%. Overall, this is good news for the Obama campaign that has been struggling to fight off criticism about the levels of unemployment in the USA.
The International Monetary Fund (IMF) announced that it intends to open a ‘precautionary’ credit line for Morocco that should protect the country against ‘external shocks’ in part due to the fact the euro zone is Morocco’s largest trade partner. More than $3.5 billion of the credit line will be available in the first year.
Standard & Poor’s (S&P) have stated that they intend to reaffirm the UK’s AAA credit rating, despite the current double dip recession and threat of a triple-dip recession. The S&P states that they believe the Government will stick to it’s budget commitments and that the economy will improve in second half 2012.
Speaking to the Sunday Times yesterday, Azad Zangana the chief economist for Schroders warned that an early exit by Greece from the euro zone could push the UK into a triple- dip recession. Earlier this month the International Monetary Fund (IMF) cut it’s growth forecast for the UK by 0.6% for 2012 and 2013 in comparison to its April forecast.