Business News

CCTV Script 29/07/16

– This is the script of CNBC's news report for China's CCTV on July 29, Friday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Besides the BOJ rate decision that's expected to come out today, a few other central banks which are adopting negative interet rates are in the spotlight as well.

Take a look at the WALL...

ECB, Swiss, Sweden, Denmark, etc.

The idea of savers being charged to keep their money in the bank might seem extraordinary even in an era of unprecedented monetary policy measures.

Near-zero interest rates aren't good for the economy in the long run, bond guru Bill Gross said Wednesday.

That's because low rates hinder the ability of savers to earn a return on their money, and that impedes investment, he said.

"Capitalism can't really thrive," the manager of the Janus Global Unconstrained Bond Fund said in an interview with CNBC's "Power Lunch."

Now, after the BOJ, all eyes are on the BOE meeting next week. The question now is -- is BOE going to join the team of negative rates?

Now one of the country's biggest banks, NatWest, part of RBS, has warned its business customers that it may have to charge for deposits. The announcement comes ahead of a meeting by the Bank of England next week which is widely expected to set a further historically low interest rate.

Expectations for the Bank of England to cut rates by 25 basis points to 0.25 percent next month are growing. While the central bank is not forecast to mimic its counterparts at the European Central Bank, Swiss National Bank or Bank of Japan by moving to negative interest rates any time soon, it is expected to hold rates at what would be a further historic low until the end of 2018, according to forecasts from Capital Economics.

The news of NatWest's letter caused consternation in the U.K., where recent data from the British Bankers' Association (BBA) showed business borrowing dropped for the first time in June as businesses delayed investment ahead of the Brexit vote.

CNBC's Qian Chen, reporting from Singapore.

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