The Federal Reserve has not raised key interest rates for a long time. The last time it raised rates was on June 29, 2006. After that, beginning in the third quarter of 2007, it started to cut rates and since December 2008, it has kept the Fed Funds rate between 0-0.25%. Now the Fed is giving hints that it is getting ready…
Well, in a sense. In its monthly meeting, Bank Of England’s Monetary Policy Committee voted to maintain the Bank Rate at 0.5% and the stock of purchased assets financed by the issuance of the central bank reserves at £375 billion. The Bank Rate has been at 0.5% level since March 5, 2009. The asset purchase program was…
The maiden monetary policy report by Chairwoman Janet Yellen is neither hawkish nor dovish. This was somewhat expected despite hyped-up market expectations. Along with former Chairman Bernanke, Chairwoman was one of the prime architects of the current policy so it should not have been surprising that her prepared remarks were quiet unexciting given that nothing…
The Reserve Bank of India (RBI) and the Indian Ministry of Finance seem to be at loggerhead. The government is concerned with the slowing growth and is trying to implement growth policies and dropping strong hints to RBI to provide some help. In its mid-year economic analysis presented in Parliament on Monday, the finance ministry said it…
Courtsey Sid Verma of Euromoney: Carney cuts a statesman-like figure, rising above partisan affiliation, respected even by his detractors, and consistently open to dialogue, say bankers, all of whom are critical of the intellectual and operational thrust of Basel III. But, Carney seems to be having a running feud with JP Morgan’s Jamie Dimon or,…
Back in July in a London investment conference, ECB President Mario Draghi pledged to do “whatever it takes” to protect the Eurozone from collapsing. Though he mildly disappointed the market in ECB’s August meeting, President Draghi delivered on his pledge is September. One of the observers was Federal Reserve Chairman Ben Bernanke who hinted of…
Here is what I am reading: Weak Japan exports, hit by Europe, raise questions on recovery (Reuters) BHP mothballs $30b Olympic Dam expansion (The Sydney Morning Herald) Drawing the Wrong Inferences from Economic Data (A Dash Of Insight) Put Inflation Fears Aside (The New York Times) “Uncertainty” Is Nothing More Than Wall Street Whining (Capital…
The monetary policy objective of Federal Reserve Board is to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. But, if after seeing Fed’s economic projections you find it hard to believe in its commitment to these objectives then you would be forgiven. Fed is projecting very high unemployment rate for the…
It is very difficult to have a dry island in a severely over-flooded region. Germany’s economy is strongly dependent upon exports and nearly 44% of her export are to other EU countries. If the economies of EU countries like Greece, Spain, Portugal, Italy etc. get in trouble then to expect that Germany will remain unaffected…
I have been reading and thinking a lot lately about the euro zone financial crisis, mainly because I think that it is holding the world economy in check and by extension the global financial markets. I have read many news articles and commentaries by economists, financial experts and reporters. Recently, I came across a Martin Wolf blog…
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