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Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 3 February 2014 [View all]xchrom
(108,903 posts)30. Carney Seen Raising Rates Before Yellen, Draghi
http://www.bloomberg.com/news/2014-02-03/carney-seen-raising-rates-before-yellen-draghi.html
Investors are betting Bank of England Governor Mark Carney will lead the charge out of record-low interest rates as central banks pivot from fighting stagnation to managing expansions.
Economists at Citigroup Inc. and Nomura International Plc say the strongest growth since 2007 will prompt the U.K. to lift its benchmark from 0.5 percent as soon as this year. Money-market futures show an increase in early 2015. Thats at least three months before the contracts indicate Federal Reserve Chairman Janet Yellen will raise the target for the federal funds rate. European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda are forecast to maintain or even ease monetary policy.
Carney and BOE officials will be looking at the domestic recovery, and if that is strong enough, then they will feel comfortable increasing rates before the Fed, said Jonathan Ashworth, an economist at Morgan Stanley in London and former U.K. Treasury official. Tightening by the major developed central banks will be gradual, and they will be aware of what everyone else is doing.
The BOE will lift rates in the second quarter of 2015 and the Fed will increase in 2016, Morgan Stanley predicts.
Investors are betting Bank of England Governor Mark Carney will lead the charge out of record-low interest rates as central banks pivot from fighting stagnation to managing expansions.
Economists at Citigroup Inc. and Nomura International Plc say the strongest growth since 2007 will prompt the U.K. to lift its benchmark from 0.5 percent as soon as this year. Money-market futures show an increase in early 2015. Thats at least three months before the contracts indicate Federal Reserve Chairman Janet Yellen will raise the target for the federal funds rate. European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda are forecast to maintain or even ease monetary policy.
Carney and BOE officials will be looking at the domestic recovery, and if that is strong enough, then they will feel comfortable increasing rates before the Fed, said Jonathan Ashworth, an economist at Morgan Stanley in London and former U.K. Treasury official. Tightening by the major developed central banks will be gradual, and they will be aware of what everyone else is doing.
The BOE will lift rates in the second quarter of 2015 and the Fed will increase in 2016, Morgan Stanley predicts.
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But business people prefer to have workers competing with each other for jobs.
tclambert
Feb 2014
#7
But, but according to trickle down economics, it should rain money on all of us below.
tclambert
Feb 2014
#49
Real State of the Union: Income Redistribution to Wealthy Continued Up at Accelerating Pace in 2013
Demeter
Feb 2014
#26
The Middle Class Is Steadily Eroding. Just Ask the Business World OR KRUGMAN, ABOVE
Demeter
Feb 2014
#39
Problems of Eurozone, European Integration Stem From Deeply Unpopular Elite Economic, Social Policy
Demeter
Feb 2014
#35