Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Low Inflation Continues To Keep Rates Down‏

Published 04/15/2014, 07:00 AM
Updated 05/14/2017, 06:45 AM

Review

Interest rates have moved sideways over the past month as the outlook is unchanged.

The ECB has a clear easing bias but so far only delivered verbal intervention in 2014.

The Fed is not happy about the perception that policies are now less accommodative.

International rates

Inflation is set to undershoot ECB expectations and lead to additional easing and more rate cuts are on the cards.

Furthermore, it seems increasingly likely that the ECB will do a form of quantitative easing through the private debt markets.

We expect the Fed to be broadly on autopilot, continuing to taper by USD10bn until Q4 14 when the QE programme will be phased out completely.

We expect global rates to move sideways until there is further clarification of the ECB's course and until US data turns better.

There is potential for higher rates mainly at the long-end of the curves towards the end of the year.

Scandi rates

In Denmark we no longer expect any independent rate hikes in the forecast horizon. This means that the certificate of deposit rate will remain negative for the next year.

In Sweden we expect a July rate cut and postpone the expected first hike to Q3 15.

Norges Bank to stay on hold for the next year and the market is already priced for this.

To Read the Entire Report Please Click on the pdf File Below

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.