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02/10/2001
US rate cut expected to battle economic recession
The US Federal Reserve was widely expected to cut interest rates for the ninth time this year in a bid to help stave off a recession and fight the effects of the terrorist attacks on the US.
With the US economy edging closer to recession many analysts were anticipating a 0.25 per cent rate cut, but a 0.5 per cent cut was not being ruled out.
Either way a further 0.25 per cent cut or even a 0.5 per cent rate cut is not unexpected in coming weeks as the Federal Reserve Board move to limit the US economic slowdown.
However, a 0.5 per cent rate cut would take the US interest rate down to 2.5 per cent and to the lowest level in over 40 years.
Although most analysts agree that interest rate cuts are inevitable in the last quarter of the year, many consider that more cuts may be just around the corner as the massive US economy totters into what may be a prolonged period of negative growth.
The rate cut though is now held as window dressing as the main concern is a downturn in consumer confidence. One recent report revealed that consumer confidence had slumped to its lowest level in eight years while unemployment, a key factor in consumer confidence, had risen to a four-year high.
Although technically it takes two full months of negative growth to constitute a recession, US economy growth fell back to around 0.3 per cent in the last reporting quarter, this was down a full percentage point on the previous quarter during which there was 1.3 per cent growth. (SP)
With the US economy edging closer to recession many analysts were anticipating a 0.25 per cent rate cut, but a 0.5 per cent cut was not being ruled out.
Either way a further 0.25 per cent cut or even a 0.5 per cent rate cut is not unexpected in coming weeks as the Federal Reserve Board move to limit the US economic slowdown.
However, a 0.5 per cent rate cut would take the US interest rate down to 2.5 per cent and to the lowest level in over 40 years.
Although most analysts agree that interest rate cuts are inevitable in the last quarter of the year, many consider that more cuts may be just around the corner as the massive US economy totters into what may be a prolonged period of negative growth.
The rate cut though is now held as window dressing as the main concern is a downturn in consumer confidence. One recent report revealed that consumer confidence had slumped to its lowest level in eight years while unemployment, a key factor in consumer confidence, had risen to a four-year high.
Although technically it takes two full months of negative growth to constitute a recession, US economy growth fell back to around 0.3 per cent in the last reporting quarter, this was down a full percentage point on the previous quarter during which there was 1.3 per cent growth. (SP)
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21 February 2002
Oftel urges BT to cut internet costs
Telecommunications regulator Oftel has recommended that BT slash their costs for unmetered Internet access. Oftel wants BT to cut the amount it charges Internet service providers to use their existing telephone network by seven per cent.
Oftel urges BT to cut internet costs
Telecommunications regulator Oftel has recommended that BT slash their costs for unmetered Internet access. Oftel wants BT to cut the amount it charges Internet service providers to use their existing telephone network by seven per cent.
03 December 2001
UK service sector confidence continues to fall
The latest quarterly survey of the UK service sector by the Confederation of British Industry (CBI) and Deloitte & Touche has found business volumes, confidence, profitability and prices are all falling.
UK service sector confidence continues to fall
The latest quarterly survey of the UK service sector by the Confederation of British Industry (CBI) and Deloitte & Touche has found business volumes, confidence, profitability and prices are all falling.
04 October 2001
UK interest rate receives further cut
The UK interest rate has been cut for the sixth time as economies around the world attempt to stem the effects of the current global climate of uncertainty. On Thursday October 4, the Bank of England’s Monetary Policy Committee announced a further 0.25 per cent cut, a move which brings the UK base rate down to 4.
UK interest rate receives further cut
The UK interest rate has been cut for the sixth time as economies around the world attempt to stem the effects of the current global climate of uncertainty. On Thursday October 4, the Bank of England’s Monetary Policy Committee announced a further 0.25 per cent cut, a move which brings the UK base rate down to 4.
16 August 2001
High retail sales in July throw doubt on further interest rate cut
The latest figures on retail sales in July have decreased hopes of a further interest rates cut. Data on retail sales released by the Office of National Statistics (ONS) show that retail sales jumped 0.6 per cent above the June figure to stand a full six percent higher than in July last year.
High retail sales in July throw doubt on further interest rate cut
The latest figures on retail sales in July have decreased hopes of a further interest rates cut. Data on retail sales released by the Office of National Statistics (ONS) show that retail sales jumped 0.6 per cent above the June figure to stand a full six percent higher than in July last year.
31 July 2001
Consumer credit could grow further if interest rate is cut
A rise in consumer credit that has outstripped City forecasts, and could herald a further cut in interest rates to buoy up the economy. According to the latest figures, released on Monday 30 July, UK consumer credit has grown by £1.
Consumer credit could grow further if interest rate is cut
A rise in consumer credit that has outstripped City forecasts, and could herald a further cut in interest rates to buoy up the economy. According to the latest figures, released on Monday 30 July, UK consumer credit has grown by £1.
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