World Bank

Central banks are cutting rates around the world

Global markets
Photo: Biddiboo/Getty Images

With the Fed universally expected to cut U.S. interest rates this month, central banks around the globe are doing the same, and an increasing number of policymakers aren't even waiting for Powell to make the announcement.

Why it matters: The central banks represent 3 of the world's largest emerging market countries and their actions send a clear signal that even with global debt rising to new highs, especially in EM, policymakers are prioritizing easy money and stimulus.

Expert Voices

Without reforms, China's Belt and Road projects could fall short

Xi Jinping and Emomali Rahmon shaking hands
China's President Xi Jinping and Tajikistan's President Emomali Rahmon at the Second Belt and Road Forum in Beijing in April 2019. Photo: Valery Sharifulin/TASS via Getty Images

The World Bank has released a study on China’s Belt and Road Initiative (BRI) that predicts major economic benefits, but only if Beijing makes some even bigger course corrections.

The big picture: While the authors find that infrastructure can increase growth through trade and investment, these gains depend on a host of reforms such as greater transparency and data reporting — especially around debt, open procurement, and social and environmental standards. Essentially, the study advises China that success requires becoming more like the World Bank.