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Added on the 26/08/2016 13:36:12 - Copyright : Wochit
In this video we take a closer look at what happens when interest rates rise and examine the effect this could have on the housing market, investment bonds and how it could eventually strengthen the pound against other currencies
Bank after central bank eased rates or pumped stimulus into the economy in 2015 - over 40 of them, in a bid to boost growth, fight deflation, or both. The results, though, are questionable - with many investors asking whether 2016 will be the year when ultra-loose monetary policy is seen to reach the limits of its potential. David Pollard reports
European Central Bank President Christine Lagarde says the institution will freeze borrowing costs again on Thursday but warns that inflation could pick up again in the near term, in an apparent pushback against market hopes of early rate cuts in 2024. It is the second time in a row the central bank has held rates, following a run of historic hikes to tame runaway price rises. SOUNDBITE
The US Federal Reserve has voted to hold interest rates at a 22-year high for a second straight meeting. "Today we decided to leave our policy interest rate unchanged," announces Fed chair Jerome Powell. SOUNDBITE
US Federal Reserve Chair Jerome Powell announces that the US Federal Reserve has voted to keep interest rates at a 22-year high, between 5.25 percent and 5.50 percent. SOUNDBITE
Fed Chair Jerome Powell announces a quarter-point raise in the US Federal Reserve's benchmark lending rate, "in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to two percent over time." SOUNDBITE