Is the beginning of another month and you know what that means – a new round of interest rate decisions! Here are three reports of interest rate that could give pips if you play your cards right:
Reserve Bank of Australia
First we have the RBA announced its decision Tuesday at 4:30 GMT. Since Australia has been the impression than expected economic reports, but lately, the market junkies are not seeing an increase of 4.75% figure last month.
You see, building approvals fell surprisingly by 7.4% in February, when the Australian bulls is expected to grow 4.2%. In addition, a total of 10,100 workers lost their jobs in February, although the rate of unemployment remained at 5.0%.
And do not forget that the strength of the Aussie as Chuck Norris still give members of the RBA heebie-jeebies. Recall that a strong currency makes exports less competitive and can take its toll on an export economy.
As bad as these reports, however, do not think the RBA actually reduce their interest rates as some bigwigs of the target market.
On the one hand, retail is still collected by 0.1% in February. In addition, many believe that once the dust settles in Japan (no pun intended), the reconstruction will push prices of commodities and help the economy of Australia.
Of course, we never know in what direction will the RBA. After all, the RBA loves surprises. Just keep your eyes peeled for any news, or add new Twitter account RBA to check for updates. And while you’re at it, why not give a Shoutout to my friends Happy Pip, Huck, and Pipcrawler Cyclopip are also in the Universe Twitter
Bank of England
Later in the week is the UK’s Monetary Policy Committee in the headlines. Like what was talking about my past blog, markets are blurred in the direction of the PSM would.
In the minutes of the MPC meeting last seen three hawkskeeters have voted for a rise in interest rates. Andrew Sentance (who will retire soon) I wanted to point rate hike-base 100, while Martin Weale and Spencer wanted to give a 75 basis-point raise. As for the other six guys MPC who voted in favor of a “wait and see the game to measure the impact of high oil prices in the economy.
Month, the MPC This decision has not been made easier. The CPI report was 4.4% in February, which is just above 2.0% set by the BOE, but is also a 28 month high for the data. On the other side of the field of MPC also has to consider the UK ‘s limited economic growth.
After all, William the wedding of Prince only inspire so much expense and good vibrations.
Stay for this because it is bound to get interesting.
The end of all interest rates next week the action takes place on Thursday at 19:45 GMT, when the ECB announced its decision.
If you’ve been too busy trying to learn how Dougie, you should know that last month, the ECB kept interest rates at a record low of 1.00%. What is more interesting, however, is that EUR / USD still rose by 100 pips because ECB President Trichet was harder than the markets had expected. You see, while members of the ECB raises inflation was only 2.2% at the end of the year, Trichet also said a rise in interest rates this month’s meeting is very possible.
If a rise in ECB interest rates is “very likely”, with an inflation rate of 2.2% at the end of the year, how much more “possible” is now the euro zone ‘s actual CPI March is 2.6%? Not only is the inflation rate of 2.0% above the ECB’s target, which is also the fastest since October 2008! That was way back when Huck was disturbing to see Beverly Hills Chihuahua with her.
It is therefore a rise in ECB interest rates in the bag?
While the odds are stacking up in favor of a rate hike, still I recommend caution in their operations. The ECB has to deal with political concerns in Portugal and Germany, as well as economic imbalances between its regions. Also, if the ECB can get away with pushing the euro higher just by the sound of hard-line, why actually raise rates and make it more expensive for the financially troubled economies like Greece and Ireland to borrow money?