(new: Yellen statements, expert commentary)
WASHINGTON (AFX) – The US Federal Reserve has left on Wednesday its key interest rate unchanged taking into account also the risk of Proposed referendum on United Kingdom membership of the European Union. The upcoming referendum in the UK on a withdrawal from the European Union (EU) have played a role in the decision, said Fed President Janet Yellen at a press conference in Washington following the interest rate decision. A Proposed referendum on United Kingdom membership of the European Union constitutes a threat to the world economy and financial markets.
The Fed funds rate lies more in a range from 0.25 to 0.50 percent, shared the monetary authorities with. In the financial markets and of experts, this was expected. For this year, the central bankers are forecasting further two rate hikes. However, expect six Fed members only with a boost.
Yellen STRESSES ‘INTERNATIONAL UNCERTAINTY’
The international uncertainty has weighed heavily on monetary policy, Yellen said. Recent economic data assessed the Notenbankerin as “mixed”. For the rest of the year could be expected in a healthy growth. One end of the labor market recovery is not in sight, though the dynamics have recently eased somewhat. But
Yellen continued to maintain that gradual rate hikes are displayed in the future. It stressed at the same time but also that there is no fixed prescribed monetary policy. However, there was a considerable uncertainty about the longer-term interest rates.
EXPERT: ‘EVERYTHING CORRECTLY MADE’
Experts showed understanding that the central bankers have given the Proposed referendum on United Kingdom membership of the European Union-risk awaited first. “Yellen did everything right,” said Otmar Lang, chief economist Targobank. Given the forthcoming referendum Proposed referendum on United Kingdom membership of the European Union-the uncertainty on the financial was already large. A rate hike would this therefore exacerbated.
is for the next Fed rate decision in July last dropped the likelihood of an increase, so long. Harm Bandholz, chief US economist at UniCredit bank, on the other hand stressed that the Fed “left all options on the table” continues to have, including a rate hike in July.
GROWTH FORECAST REDUCED
the Fed expects the economy will grow at a moderate pace and the labor market indicators will improve. The growth forecast was lowered for this year to 2.0 percent. In March, the central bankers had forecast 2.2 percent. Recently, the pace had weakened during job setup. Economic growth had hand recently accelerated.
The inflation is expected to remain, according to central bankers shortly low and attract medium. The development should be supported by rising energy prices. In addition, the labor market development should support prices. Inflation is expected to therefore continue moving toward two percent.
key interest FORECASTS FOR 2017 UND 2018 REDUCED
The simultaneously released with the rate decision key rate forecasts show that by the end of 2016, the Monetary Policy Committee FOMC in middle (median) still expects an interest rate of 0.9 percent. In March, the value had been located at this level. On average, the central bankers expect two rate hikes from this year.
By the end of 2017, the Fed expects, however, an average of a base rate of 1.6 percent. Here, the monetary authorities were expected in March still 1.9 percent. The end of 2018, an interest rate of 2.4 percent is expected in the middle, compared to 3.0 percent in March.
FOR FOURTH CONSECUTIVE NO INCREASE
The forecasts of the Fed arising from individual forecasts of Fed members. They are asked to give their assessments at the time. This is a trend calculated by the median or median is generated. In financial markets, the probability of a rate hike this year, priced at under 40 percent.
For the fourth consecutive year, the monetary authorities have left intact now the prime rate. In mid-December had raised rates for the first time since the financial crisis, the central bank. This had previously been the end of 2008 – located in the range between zero and 0.25 percent
lt The euro exchange rate and – shortly after the global financial crisis had peaked; EURUS.FX1 & gt;. put after the rate decision at first, approaching the level of 1.13 dollars. He gave his winnings but then mostly again. The prices of US government bonds to put. The US stock markets turned in the course of the press conference easily into Minus./tos/jsl/he
No comments:
Post a Comment