Thursday, Jun 01, 2006

Fed thrusts June rise in interest rates into the picture

TimesOnline: Markets tense as Fed hints at a rate rise

The Federal Reserve made markets jittery with talk that June may see yet another increase in rates and they even considered a .5% increase in May.

Posted by denzil @ 01:12 PM (494 views)
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2 Comments

1. Markd said...

So the likelihood rises that we will soon have US rates 0.75% above those here...more upward pressure on the UK rate!

Thursday, June 1, 2006 02:01PM Report Comment
 

2. uncle tom said...

The upward pressure is certainly there, but I'm not sure it is going to come home to roost in the UK just yet.

Next week's MPC decision is a much harder call than last month. There are some factors that may spook the committee members, not least the reappearance of speculators ganging up to screw vulnerable economies, and rapidly vanishing liquidity around the world.

However, central bankers don't like choppy seas, and my guess is that they won't want to add to the recent market volatility. Although I think a split vote is highly likely, my call this month is:

NO CHANGE

Friday, June 2, 2006 10:47AM Report Comment
 

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