Current Affairs Global - 31 July 2014

1. The Central bank of USA, Federal Reserve reduced its monthly purchases of Government-linked bonds by another USD 10 billion to USD 25 billion during its meeting yesterday. This cut is as per the policy launched in January this year to reduce the stimulus programme by USD 10 billion every month from all time high of USD 85 billion which the central bank has started in September 2012.

The US economy grew at an annual rate of 4% in the second quarter of current year and also job market improved significantly. The Fed may increase rates mid of next year if US economic growth and job market continues to improve. The Fed left its benchmark interest rate unchanged at the unprecedented, near-zero level since December 2008 post the subprime crisis.

2. Eurozone inflation dropped to 0.4% in July from 0.5% in June which is the lowest level since the recent financial crisis. This is much lower than the European Central Bank-s (ECB) comfort level of 1% and poses significant risk for deflation.

Also Euro zone unemployment rate dropped marginally to 11.5% in June compared to 11.6% in May.

3. South African Cricketer Jacques Kallis, also considered one of the greatest all-rounders of all times, announced his retirement from all formats of international cricket yesterday. He has announced his retirement from all form of International cricket but he will continue to play for IPL team Kolkata Knight Riders.