PNN – The research conducted by a Canadian analytical institute indicates that the American economic recession is coming and the efforts of the central bank of this country to reduce the bank interest rate will not help.
According to the report of Pakistan News Network, the American news channel “CNBC” added: According to analysts of the Canadian Bank Credit Analysis (BCA), contrary to what many believe, the American economy is on the brink of recession.
The website of this American news network wrote: The BCA research institute has witnessed that the American economy is on the verge of collapse and the predictions about the action of the American central bank in reducing the interest rate will not be enough to get the market out of this crisis.
Garry Evans, chief global asset allocation strategist from BCA Research Institute, said in an interview with this American news network: Sectors are collapsing now and rapidly.
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He added: Each of us now believes that economic recession is ahead, and this is exactly the opposite of what the market believes.
This senior strategist of the BCA research institute said that one of the signs of the American economic recession is the worsening of the labor market situation in this country.
Therefore, according to the report, the US Department of Labor stated in a report that the unemployment rate reached 4.3 in July, which was only slightly higher than in October 2021; Meanwhile, the US manufacturing activity index reached its lowest level in the last eight months in the same month.
This report further adds: Investors are expecting at least a three (percent) rate (interest) reduction from the American Central Bank, but the expert of the BCA research institute does not consider this measure to be enough to get the American economy out of recession.
Evans told “CNBC” about this: A slight reduction in the interest rate cannot prevent economic recession, the average economic recession (in America) will also be about 10 months. The market believes that the bank interest rate will be around 3% by the end of next year, the current rate is 5.3%. This reduction does not occur until there is a recession.
The website of the CNBC news network wrote: Economic recession generally occurs when the economy of a country faces a decrease in GDP for two consecutive years, although the United States has not yet officially entered an economic recession, but according to research, three out of five Americans believe this.