Recent Posts Widget

America Set To Hike Rates – And It Will Affect YOU

GETTY US interest rates are set to increase this week Homeowners and savers in Britain will see a knock-on effect from action by America...

America Set To Hike Rates – And It Will Affect YOUGETTY
US interest rates are set to increase this week
Homeowners and savers in Britain will see a knock-on effect from action by America's central bank – the US Federal Reserve (The Fed).
American rate changes are typically followed by the the Bank of England (BoE) – three months after the Fed dropped rates to zero in December 2008, the Bank cut Britain's core interest rate to 0.5 per cent and has not moved them since.
A rise by the world's largest economy would signal the end of the low interest era that has dominated since the financial crisis hit in 2008 – and it can only be a matter of time before other countries follow suit.
It's predicted the US will again make hikes in June, September and December to be in the range of 1.00-1.25 per cent by end of the 2016.

the federal reserve - America Set To Hike Rates – And It Will Affect YOUGETTY
The US Federal Reserve is expected to hike rates Wednesday
Policymakers at the BoE will now doubt be paying close attention to how America's rate hike plays out, and could lead to rises at home sooner rather than later.
As with the US, the British economy has steadily recovered from the economic crisis, wage growth is increasing while unemployment is low.
Many economists expect rates in Britain to start increasing in the first half of 2016, despite comments by the Bank that it could be 2017 before a rise.
Howard Archer, chief economist at IHS Global Insight, said: "We believe the Bank of England is more likely than not to edge interest rates up from 0.50 per cent to 0.75 per cent around May.
"The US Federal Reserve now looks highly likely to raise interest rates in mid-December, which may make it easier for the Bank of England to raise interest rates without leading to an unwanted significant strengthening of the pound."
However, there's a worry that UK exports to America would plunge when rates rise, thanks to tightened consumer spending in America.
And there's a larger fear a hike in US rates could be a huge a shock to emerging economies, some of Britain's key trading partners, which would in turn hit the UK's ability to maintain economic growth.
Tom Elliott investment strategist at wealth manager deVere Group, said: “Investors should expect volatile financial markets in the first half of next year, as stock and bond markets learn how aggressive the Fed is likely to be in its monetary tightening.
“Higher U.S. borrowing rates will also be bad news for indebted emerging market economies. Not only will interest rates rise, but repayment costs in local currency terms will also go up as the dollar strengthens."
graph - America Set To Hike Rates – And It Will Affect YOURBS Economics
Britain's economy vs America

COMMENTS

Name

Beauty,1,Buhari,1,Business,1,Celebs,18,Download,1,Education,3,Entertainment,9,Freebies,1,Funny,2,Games,1,Health,53,Music,2,News,54,Science,2,Sport,6,Tech,16,Travel,18,Weird,1,World News,8,
ltr
item
TRENDS: America Set To Hike Rates – And It Will Affect YOU
America Set To Hike Rates – And It Will Affect YOU
http://www.breaknews.xyz/ocs-images/62678/america-set-to-hike-rates-and-it-will-affect-you.jpg
TRENDS
http://www.trendcabal.com/2015/12/america-set-to-hike-rates-and-it-will.html
http://www.trendcabal.com/
http://www.trendcabal.com/
http://www.trendcabal.com/2015/12/america-set-to-hike-rates-and-it-will.html
true
1896305414487606671
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy