Global Debate On Interest Rate &Nbsp; Two Quantitative Easing Or Opening Up

33 hours from 3 a.m. Beijing time, the Central Bank of the western economies of the United States, Britain, the euro zone and Japan will announce the latest interest rate decisions, and Australia and other central banks will also announce this week.

Analysts generally believe that the Federal Reserve will launch this week.

In the central bank this week, the Fed has undoubtedly become the focus of attention.

It is widely expected that the Federal Reserve will announce a new round of quantitative easing strategy at the end of interest conference this Wednesday.

But the intensity of the stimulus is still the focus of the market debate.

"The Fed's measures may disappoint the market, and the intensity of the policy may not be enough."

JP Morgan Asset Management Co global strategist David Sharp believes.

A survey by Townsend Reuters shows that the market expects the Federal Reserve to buy 80 billion -1000 billion of assets every month under the new plan to boost the weak economy.

Dudley, President of the Federal Reserve Bank of New York, has said that the effect of buying $500 billion is likely to be equivalent to a 0.5 or 0.75 percentage point cut in the federal funds rate.

Some media analysts believe that the easing measures announced by the Federal Reserve this week will cause the US dollar to continue to depreciate and force other central banks to follow up measures to cushion the impact of the appreciation of the currency.

The Bank of Japan, which just announced the rate cut early last month, is likely to act as the Fed's policy.

Shirakawa Gataaki, governor of the Bank of Japan, reiterated last week that if the economy deteriorates, the Bank of Japan may consider expanding the size of the asset purchase plan on the basis of the current 5 trillion yen.

At the same time, it also intends to buy ETF and real estate investment trusts to counter deflation.

Last week, the Bank of Japan decided to maintain the ultra loose monetary policy unchanged, and the next meeting, which was scheduled for 15 to 16 November, was advanced to from November 4th to 5th.

In a meeting earlier last month, the Bank of Japan unexpectedly announced a cut in interest rates and implemented an asset acquisition programme of up to 5 trillion yen.

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The United Kingdom and the European Central Bank are still at a loss.

Data released by the National Bureau of statistics last week showed that the initial value of GDP in the third quarter of the country increased by 0.8%, an increase of 2.8% over the same period last year.

In addition, the international Rating firm Standard & Poor's last week adjusted the UK rating outlook to a stable rating confirmed as "AAA", after which the company's rating outlook for the UK was negative.

All this makes the market anticipate that the possibility of further easing of the Bank of England is less likely.

Tucker, vice president of the Bank of England, said last week that the Bank of England is unlikely to take exit strategy in view of the uneven economic recovery.

So far, the Bank of England has lowered interest rates to a record low of 0.5%.

A member of the Bank of England's monetary policy committee recently called for raising interest rates to deal with inflationary pressures, and another member wanted the central bank to expand the scale of asset purchases to support economic recovery, media reports said.

But other members tend to take a more moderate stance.

Market participants expect that the Bank of England is unlikely to take a sudden move on Thursday's interest rate meeting.

A survey from Townsend Reuters shows that analysts believe that as the economy slows down, the Bank of England may expand its easing measures early next year, while the Bank of England first raised interest rates from record lows 0.5% to four in the four quarter of 2011.

In addition, data released by the European Bureau of statistics in October 29th showed that the unemployment rate in the euro area rose to 10.1% in September, and the euro area inflation rate rose by 1.9% in October, the largest increase in two years.

However, the European Central Bank will maintain its benchmark interest rate unchanged on Thursday, as the data is still in line with the European Central Bank's goal of controlling inflation at a level of slightly below 2% in the medium term.

The European Central Bank President Terry also believes that the ECB's monetary policy stance is "appropriate".

IMF says Australia needs further interest rate increase

International Monetary Fund (IMF)

IMF said Australia's inflation rate will soon be close to the high end of the 2% to 3% target range, and points out that Australia's housing prices are too high. If the country's economy continues to expand as expected, the monetary authorities need to raise the benchmark interest rate.

Nevertheless, the recently released economic data still make the market lower expectations for the Bank of Australia to further raise interest rates.

Data released in October 27th showed that Australia's three quarter consumer price index (CPI) truncated the average value rose by 0.6%, an increase of 2.5% over the same period last year, the lowest since the end of 2005.

Analysts believe that this data has greatly reduced the need for Australia to raise interest rates this week.

Since last October, the Bank of Australia has raised interest rates for the six time, reaching a total of 150 basis points, making the country far ahead of the stimulus package.

However, the uncertainty of the external economy has led the Australian central bank to withdraw from its rapid pace for a long time and will have to go to the end of June this year.