Bank on turmoil
Article Abstract:
US economic growth does not appear to be slowing and interest rates may have to be raised to ensure that supply and demand are aligned. It is uncertain how far the Federal Reserve might raise rates, and a level of 7% could lead to deflation. Federal Reserve chairman, Alan Greenspan, would like stock prices to drop to cut consumer spending and borrowing, but this could lead to a rate rise. Meanwhile, the governor of the Bank of England, Eddie George, is concerned about lack of preparedness for a possible financial disaster, though he has not been specific about where problems could lie. He is unable to do so, since he could provoke a crash if he spells out where the problems are.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
Why ignorance is bliss - for now
Article Abstract:
US interest rates could be raised in Jul 1998 and this could be followed by further rate rises. Rates are decided by a committee which finds decisive action difficult, so changes tend to be gradual. There is insufficient knowledge of the impact of rate changes to justify aggressive rises which could exacerbate economic instability. US inflation is low, and this, combined with uncertainty over the impact of rate rises means that it is likely that rates will not be raised in Jul 1998.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Fresh reasons for another Bank split
Article Abstract:
The Monetary Policy Committee (MPC) of the Bank of England is to meet in Dec 1999, and has to assess a number of factors when deciding on interest rates. These factors include trends in net exports, wage inflation, unemployment, and the likely course of pound sterling. Domestic capacity constraints still have some impact, despite globalization, though the world output gap is important. Competition is likely to depress prices, and productivity can be raised through technological progress, which also depresses inflation. There is disagreement as to whether the low level of inflation in late 1999 is significant, since interest rates affect inflation in the future, not the present.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Searching for the grail. Going for e-broke
- Abstracts: The web's the limit. Instant execution
- Abstracts: Investing in the land of plenty. Still vulnerable. Dragons apparent
- Abstracts: Top of the cycle for the mining sector in sight. Mining shares braced for harder times ahead. IT sector shows sell signs
- Abstracts: New rationality. Engine trouble. Changing times