Archive for June, 2005
Bank of England’s interest rates review
These are a summary of the minutes of the Bank of England’s Monetary Policy Committee meeting held on 8 and 9 June 2005. The immediate policy decision The news on UK-weighted world demand had been slightly on the downside over the past month – with prospects for the euro area looking a little weaker than [...]
June 30, 2005
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Interest rate traders prepare for Fed comments
Thursday 30th June’s trading on Wall Street ought to come with a warning- not for the faint of heart. In the space of a few hours, the Federal Reserve will announce its latest policy on the nation’s interest rates, and institutional traders – the big banks that run mutual funds, hedge funds and other investment [...]
June 27, 2005
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Swedish interest rate cuts weakens euro further
The euro was under continued pressure following a surprisingly strong interest rate cut by the Swedish central bank – the Riksbank – that fuelled speculation the European Central Bank might eventually follow suit. The single European currency in late-day deals was at 1.2139 dollars against 1.2146 late on Monday in New York. The dollar was [...]
June 22, 2005
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Euro govt bonds off lows on ECB rate cut speculation
European government bonds were off their earlier lows, benefiting from speculation that the European Central Bank may be edging closer to an interest rate reduction. A news report citing unnamed ECB officials said the central bank is preparing to reduce borrowing costs if backed up by sufficiently weak data out of the area, boosted prices [...]
June 21, 2005
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ECB interest rate dilemma continues for council
European Central Bank uncertainty about whether interest rates might have to be cut to boost the flagging eurozone economy has spilled into a semi- public debate among members of its rate- setting ECB council. Hints by Jean-Claude Trichet, the ECB president, and Otmar Issing, the bank’s chief economist, that the possibility had increased of borrowing [...]
June 16, 2005
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UK interest rates stay at 4.75%
The Bank of England has kept interest rates at 4.75% where they have stood since August 2004 after an increase from 4.50%. This is the outcome that was largely expected and shows that the economy is in a stable state. It is unlikely that the Bank will change rates for some time to come unless [...]
June 9, 2005
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London traders speculate over the euro’s future
Traders and dealers in London’s financial markets have found a new subject for speculation- is the EU’s eurozone going to collapse after the “no” votes in referendums in France and the Netherlands on the European constitution? The City has always been sceptical about the project that has led 12 EU members to adopt a common [...]
June 6, 2005
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ECB fiddles whilst euro burns
Eurozone government bond yields remained at record lows on Thursday afternoon, and were little moved by the European Central Bank’s decision to leave interest rates unchanged at 2 per cent. With unemployment above 10% in Belgium, France, Germany, Spain and Greece- maybe these ECB members should join them after doing nothing for 2 whole years. [...]
June 3, 2005
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Euro sinks further after ‘break up’ talk
The under- fire euro fell further on Wednesday, slumping to an eight-month low against the US dollar amid rumblings over the long-term future of the eurozone. The fresh selling was prompted by a report claiming that Hans Eichel, the German finance minister, and Axel Weber, the president of the Bundesbank, were present at a meeting [...]
June 2, 2005
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Treasury yields drop below 4%
Yields on the benchmark 10 year US Treasury notes fell below 4 per cent for the first time in three months after weak economic data and month- end buying pushed prices higher. Yields on the 30- year long bond dropped to 4.331 per cent, their lowest in almost two years. The 10-year yield dipped to [...]
June 1, 2005
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