Archive for February, 2006
Loans rates rises looks less likely
Fed President Santomero spoke before the CFA Society of Philadelphia focusing on long term potential growth. He commented that while the US are getting close to full utilization in the job markets, strong productivity is helping to contain inflationary pressures. US jobless claims declined to 278k versus market expectations of a rise to 295k. The [...]
February 24, 2006
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US loans rates to rise at least twice, ECB also suggests more rises
The US’s FOMC minutes were released yesterday evening and the initial reaction was to focus on dovish aspects, which included sentiments that rates were close to neutral. The minutes also flagged changes to the language of the FOMC statement from further tightening “may” be necessary to “might” be necessary. Does “might” imply less probability than [...]
February 22, 2006
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Quiet day for loans rates and Sterling
There was very thin trade yesterday following President’s day in the United States and consequently the dollar remained unchanged against major currency pairs. Looking at the recent weekly trend however demonstrates a slightly weaker dollar as there is a chance that positive data is no longer supportive for the dollar as the market has already [...]
February 21, 2006
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Dollar bounce as yield play increases/ UK disappoints.
The dollar reached a six-week high against the euro yesterday as a report showed U.S. home construction surged last month, reinforcing expectations for two more interest-rate increases this year. The dollar also gained versus the yen before Federal Reserve Chairman Ben S. Bernanke addresses Congress for a second day, after saying a sustained economic expansion [...]
February 17, 2006
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Mixed messages for UK and US loans rates rises
The much-anticipated Bank of England quarterly inflation report and accompanying press conference helped drive sterling to a high of 1.7491 as expectations for an interest rate cut were dealt a hefty blow. The BoE said inflation was likely to remain close to its 2% target during the next two years. The Bank surprised the market [...]
February 16, 2006
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UK loans interest rates on hold- BoE at 4.5pc.
As widely expected the Bank of England kept interest rates at 4.5% for the sixth month running yesterday although some analysts now anticipate that slow economic growth will prompt a cut in the next few months. It seems opinion is split with some calling for a rate cut and others of the opinion that the [...]
February 10, 2006
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Home loans rates face divergent interest rates outlook
At the Bank of Japan monthly monetary policy meeting the BOJ kept policy unchanged although there had been speculation earlier in the week that they could indicate a willingness to scrap their quantitative easing policy in which they flood the banking system with cash and keep rates near to zero. The BOJ are now expected [...]
February 9, 2006
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Inflation and job growth lead new FED’s Bernanke’s agenda
The new Federal Reserve Chairman Ben Bernanke vowed on Monday to do his best to carry out the central bank’s mission of fighting inflation, fostering economic growth and nurturing a healthy jobs climate. “Our mission as set forth by the Congress is a critical one,” Bernanke said yesterday. Fed Vice Chairman Roger Ferguson administered the [...]
February 7, 2006
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ECB signals rate rise for next month as recovery increases
Jean-Claude Trichet, European Central Bank president, yesterday sent a clear signal that the ECB would almost certainly raise interest rates again next month to head off inflationary dangers as the eurozone’s recovery gathers pace. Financial markets’ expectations of a quarter percentage point increase in March were “reasonable”, Mr Trichet said. Stressing the ECB’s “vigilance” – [...]
February 3, 2006
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Greenspan ends FED era with another loans rate rise
The US Federal Reserve yesterday raised interest rates another quarter point to 4.5 per cent, a decision that brought to a close Alan Greenspan’s long chairmanship of the central bank but not an end to its campaign of rate increases. In its accompanying statement, the policymaking Federal Open Market Committee said “some further policy firming [...]
February 1, 2006
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