Archive for August, 2005
USA’s current account deficit clouds future of economy
With the US economy again seemingly in rude good health, it has been tempting to forget about America’s bloated current account deficit. The US has racked up a deficit of around $2,247bn (€1,821bn, £1,260bn) since 2001 without suffering the ill effects predicted by textbooks: chronic currency weakness and surging interest rates. In fact, the dollar [...]
August 11, 2005
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Bank of England cuts UK interest rates by 25 basis points whilst ECB again does nothing
The MPC yesterday cut its main interest rates for the first time in two years in an attempt to boost consumer confidence and avoid falling short of its inflation target. The Committee cut rates by 25 basis points to 4.5% in an attempt to bolster spending after a weak first half year. They did however [...]
August 5, 2005
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Bank of England Reduces Interest Rates by 0.25 Percentage Points to 4.5%
The Bank of England’s Monetary Policy Committee today voted to reduce the Bank’s repo rate by 0.25 percentage points to 4.5%. In the first half of the year, output growth in the United Kingdom was subdued. Household spending and business investment growth have slowed. Although there are some signs of a pickup in consumer spending, [...]
August 4, 2005
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Attention focussed on Central Bank meetings tomorrow
The Greenback was once again on the soft side yesterday, cable traded well through 1.7700 and EUR/USD comfortably broke 1.2200. The buck slid for two days despite a run of reasonably positive US economic data as attention once again focussed on the US twin deficits. The Dollar has subsequently bounced back as the market focus [...]
August 3, 2005
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