The international environment 1995 Q4

• Growth in the major six overseas economies slowed in the second quarter, in part because of stock adjustments. It slowed sharply in the United States; in Japan, growth in the second quarter was stronger than in the first, but the economy remained weak. In Europe, too, there was some evidence of a slowdown. Monthly data for the third quarter have been mixed.
• Inflation fell in all the major economies between June and July, and fell further in the United States and Germany subsequently. Commodity prices continued to fall in the third quarter.
• Official interest rates were cut in the United States, Japan, Germany and several other European countries during the third quarter. The dollar strengthened to a 14-month high against the yen. A further fiscal package to boost economic recovery was announced in Japan; contractionary budgets were announced in France and Italy.

The international environment