Interest Rates Calendar

ECB will not hike before early 2011
Given that the ECB has announced that it will keep full allotment in place at its weekly main refinancing operations and at its 1-month auctions until October we think that a hike in November 2010 is too early and we thus move our projection of a first hike to Q1 2011. The ECB is heading towards the exit at a slow pace The ECB announced last Thursday at the ECB Governing Council meeting that the 3-month auctions will be with fixed allotment from now on (see ECB meeting: A slow normalisation ). <p><a href="http://feedads.g.doubleclick.net/~a/h4G1IrquC52yTwGhQafhiQuaKrk/0/da"><img src="http://feedads.g.doubleclick.net/~a/h4G1IrquC52yTwGhQafhiQuaKrk/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/h4G1IrquC52yTwGhQafhiQuaKrk/1/da"><img src="http://feedads.g.doubleclick.net/~a/h4G1IrquC52yTwGhQafhiQuaKrk/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=rPJ1GErPZIA:EW1AHW7tnco:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=rPJ1GErPZIA:EW1AHW7tnco:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=rPJ1GErPZIA:EW1AHW7tnco:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=rPJ1GErPZIA:EW1AHW7tnco:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB Holds Rates Steady, But Makes Moves to Tighten Monetary Policy
The ECB is in the middle of a tough balancing act as it is attempting to lay the groundwork for mopping up extra liquidity in the banking system while still maintaining favorable lending conditions and dealing with the fallout from the Greece debt situation. Some Steps to Tighten Monetary Policy “The Eurosystem continues to provide liquidity support to the banking system of the euro area at very favorable conditions,” Trichet said. It will still lend as much money as needed through its <p><a href="http://feedads.g.doubleclick.net/~a/5bRxFlIDPmZBfrL0h6Mr_9lTehM/0/da"><img src="http://feedads.g.doubleclick.net/~a/5bRxFlIDPmZBfrL0h6Mr_9lTehM/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/5bRxFlIDPmZBfrL0h6Mr_9lTehM/1/da"><img src="http://feedads.g.doubleclick.net/~a/5bRxFlIDPmZBfrL0h6Mr_9lTehM/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=I3qjY8nnaCw:DGFfHfaLrb4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=I3qjY8nnaCw:DGFfHfaLrb4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=I3qjY8nnaCw:DGFfHfaLrb4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=I3qjY8nnaCw:DGFfHfaLrb4:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB meeting: A slow normalisation
The ECB’s weekly main refinancing operations and the one-month auctions will continue to be with full allotment at least until 12 October 2010. That the ECB promised to give full allotment for such a long period was today’s big surprise. For the three-month auctions the ECB is moving to fixed allotment. The last 6-month auction will be at a rate indexed to the refinancing rate. This will not matter much though, as the refinancing rate is expected to remain unchanged for at least 6 months. The <p><a href="http://feedads.g.doubleclick.net/~a/mb_VGMAxj6LNPjFvHYLrhB_ZM1o/0/da"><img src="http://feedads.g.doubleclick.net/~a/mb_VGMAxj6LNPjFvHYLrhB_ZM1o/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/mb_VGMAxj6LNPjFvHYLrhB_ZM1o/1/da"><img src="http://feedads.g.doubleclick.net/~a/mb_VGMAxj6LNPjFvHYLrhB_ZM1o/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=4GVMbYPustQ:I9B9WzdbEw8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=4GVMbYPustQ:I9B9WzdbEw8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=4GVMbYPustQ:I9B9WzdbEw8:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=4GVMbYPustQ:I9B9WzdbEw8:F7zBnMyn0Lo" border="0"></img></a> </div>

Preview: ECB Rate Decision
Trichet is likely to warn against premature tightening and will again reaffirm that the measures taken by the ECB to withdraw liquidity is not a precondition to a rate hike and say that rates are appropriate. Despite a slowdown in Eurozone growth, latest projections are unlikely to see any substantial revisions. Trichet is likely to call on Greece, as well as other nations in focus, to deal with debts on their own and refrain from calling on external help. The latest ECB meeting comes against <p><a href="http://feedads.g.doubleclick.net/~a/CwSWQ3i8tJzcYAQd6kmm3Jnc32A/0/da"><img src="http://feedads.g.doubleclick.net/~a/CwSWQ3i8tJzcYAQd6kmm3Jnc32A/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/CwSWQ3i8tJzcYAQd6kmm3Jnc32A/1/da"><img src="http://feedads.g.doubleclick.net/~a/CwSWQ3i8tJzcYAQd6kmm3Jnc32A/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9FI6uwjLr8E:Km6LrVrcjMo:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9FI6uwjLr8E:Km6LrVrcjMo:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=9FI6uwjLr8E:Km6LrVrcjMo:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=9FI6uwjLr8E:Km6LrVrcjMo:F7zBnMyn0Lo" border="0"></img></a> </div>

Preview: BOE Rate Decision
All economists on Bloomberg expect the APF target to be left unchanged at GBP 200bln BOE to remain in ‘wait and see’ mode, but leave door open to more easing The MPC will most likely keep interest rates at 0.5% and refrain from increasing the QE target for the time being, as it continues to evaluate the impact of the GBP 200bln scheme on the economy. Recent data has been mixed but on the whole slanted to the upside. Q4 GDP was recently revised up to 0.3% from 0.1%, PMI manufacturing for Feb. <p><a href="http://feedads.g.doubleclick.net/~a/pPgD1Dwp9Pp0D1DA05e3PVGj_o0/0/da"><img src="http://feedads.g.doubleclick.net/~a/pPgD1Dwp9Pp0D1DA05e3PVGj_o0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/pPgD1Dwp9Pp0D1DA05e3PVGj_o0/1/da"><img src="http://feedads.g.doubleclick.net/~a/pPgD1Dwp9Pp0D1DA05e3PVGj_o0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cAzUh86bBiU:7XWJJWDGa_4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cAzUh86bBiU:7XWJJWDGa_4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cAzUh86bBiU:7XWJJWDGa_4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=cAzUh86bBiU:7XWJJWDGa_4:F7zBnMyn0Lo" border="0"></img></a> </div>

Canada: BoC tweaks its press release
As expected, the Bank of Canada (BoC) kept its overnight rate unchanged at 0.25%. Although the BoC expects its policy rate to remain at its current level through the end of Q2 2010, its assessment about inflation risks has been modified from “tilted slightly to the downside” to “roughly balanced”. The change in wording may appear trivial but it is nonetheless significant as it reflects an economic backdrop that continues to improve at a much faster pace than what the Bank had envisioned (real <p><a href="http://feedads.g.doubleclick.net/~a/Z1aLOU0x61BKqbIg69Q3SdHxJgg/0/da"><img src="http://feedads.g.doubleclick.net/~a/Z1aLOU0x61BKqbIg69Q3SdHxJgg/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Z1aLOU0x61BKqbIg69Q3SdHxJgg/1/da"><img src="http://feedads.g.doubleclick.net/~a/Z1aLOU0x61BKqbIg69Q3SdHxJgg/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Hof-BHx84Rk:PImTe_TGpDQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Hof-BHx84Rk:PImTe_TGpDQ:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Hof-BHx84Rk:PImTe_TGpDQ:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=Hof-BHx84Rk:PImTe_TGpDQ:F7zBnMyn0Lo" border="0"></img></a> </div>

ECB preview: Dovish
Since the last Governing Council meeting, macroeconomic data has been soft and concerns about Greece remain high on the agenda. With this background, we expect that the ECB will be rather dovish. Rates will of course remain on hold. The ECB is eager to continue with its exit strategy, but sees no need to “rock the boat” just now. We thus expect that the ECB will continue with full allotment at both the main refinancing operations and the one-and three-month auctions throughout Q2. We expect <p><a href="http://feedads.g.doubleclick.net/~a/1lxKgldsnRkQV-W0jj_ny_5-yv8/0/da"><img src="http://feedads.g.doubleclick.net/~a/1lxKgldsnRkQV-W0jj_ny_5-yv8/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/1lxKgldsnRkQV-W0jj_ny_5-yv8/1/da"><img src="http://feedads.g.doubleclick.net/~a/1lxKgldsnRkQV-W0jj_ny_5-yv8/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cuaTfOP94vw:S1F9zgSRtXc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cuaTfOP94vw:S1F9zgSRtXc:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=cuaTfOP94vw:S1F9zgSRtXc:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=cuaTfOP94vw:S1F9zgSRtXc:F7zBnMyn0Lo" border="0"></img></a> </div>

Semiannual Monetary Policy Report to the Congress
The timing of the exit strategy will be determined to economic and financial developments Economic slack, subdued inflation trends and stable inflation expectations support maintaining low rates for a prolonged period The Fed remains committed to transparency, but will ensure that monetary policy remains insulated from political pressures Bernanke reinforced the message that rates will stay low for an extended period in today’s semiannual report to Congress. While his comments on the economic <p><a href="http://feedads.g.doubleclick.net/~a/kegfjja0Gj6HVMcpX4hVV_8hVFQ/0/da"><img src="http://feedads.g.doubleclick.net/~a/kegfjja0Gj6HVMcpX4hVV_8hVFQ/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/kegfjja0Gj6HVMcpX4hVV_8hVFQ/1/da"><img src="http://feedads.g.doubleclick.net/~a/kegfjja0Gj6HVMcpX4hVV_8hVFQ/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lTAEppHTRXQ:2HQ-Hi8dQfM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lTAEppHTRXQ:2HQ-Hi8dQfM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=lTAEppHTRXQ:2HQ-Hi8dQfM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=lTAEppHTRXQ:2HQ-Hi8dQfM:F7zBnMyn0Lo" border="0"></img></a> </div>

Bernanke Testimony Before Congress
In testimony before the House Financial Services Committee Fed Chairman Bernanke told legislators that the economic recovery is not yet on a sustainable path, and that the Fed’s near zero interest rates are still needed. The Fed sees the economy expanding between 3.0% and 3.5% this year and between 3.5% and 4.5% in 2011, but Bernanke noted that the strong growth in the latter half of 2009 was fueled by temporary factors and that the unemployment rate is seen falling only slowly, to around 7% <p><a href="http://feedads.g.doubleclick.net/~a/Dxp63kSHyfdpE_1BiQvuQvpjQ7s/0/da"><img src="http://feedads.g.doubleclick.net/~a/Dxp63kSHyfdpE_1BiQvuQvpjQ7s/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Dxp63kSHyfdpE_1BiQvuQvpjQ7s/1/da"><img src="http://feedads.g.doubleclick.net/~a/Dxp63kSHyfdpE_1BiQvuQvpjQ7s/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=B-w-wRFP2vI:KeFbcHQWJ2E:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=B-w-wRFP2vI:KeFbcHQWJ2E:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=B-w-wRFP2vI:KeFbcHQWJ2E:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=B-w-wRFP2vI:KeFbcHQWJ2E:F7zBnMyn0Lo" border="0"></img></a> </div>

BOE King Sees Headwinds as Euro-zone Recovery "Stalls"
The Pound came under pressure overnight following testimony by Bank of England Governor Mervyn King in which he said the UK economy faces a new threat: the risk of a weaker-than-expected recovery in the Euro-zone. The BOE had factored in higher exports and an increase in net trade as domestic demand faltered, mainly on the back of a weaker Pound. However those gains have not materialized, though King expected then to “in due course.” One problem is that, according to King, the Euro-zone <p><a href="http://feedads.g.doubleclick.net/~a/0shcB44WvaSN1jmD439MfipMH5A/0/da"><img src="http://feedads.g.doubleclick.net/~a/0shcB44WvaSN1jmD439MfipMH5A/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/0shcB44WvaSN1jmD439MfipMH5A/1/da"><img src="http://feedads.g.doubleclick.net/~a/0shcB44WvaSN1jmD439MfipMH5A/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=swm4shwaILs:bfp0sb-0qro:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=swm4shwaILs:bfp0sb-0qro:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=swm4shwaILs:bfp0sb-0qro:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=swm4shwaILs:bfp0sb-0qro:F7zBnMyn0Lo" border="0"></img></a> </div>

USD, recovery optimism and interest rates
The USD is consolidating near a nine-month high supported by concern about sovereign debt risk in Europe and optimism about the US economic recovery. Sovereign debt risk in Europe is expected to force the ECB to maintain low yields for some time to come. Optimism about the US recovery appears to be a major reason the Fed surprised the markets and hiked the discount rate last week. By hiking the discount rate the Fed has begun its exit strategy and laid the foundation for an eventual tightening <p><a href="http://feedads.g.doubleclick.net/~a/BAb4S76p5KDsrXthfI-XJhQ25JY/0/da"><img src="http://feedads.g.doubleclick.net/~a/BAb4S76p5KDsrXthfI-XJhQ25JY/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/BAb4S76p5KDsrXthfI-XJhQ25JY/1/da"><img src="http://feedads.g.doubleclick.net/~a/BAb4S76p5KDsrXthfI-XJhQ25JY/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=bz21EeIbcmg:dpw7ZlnbHD4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=bz21EeIbcmg:dpw7ZlnbHD4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=bz21EeIbcmg:dpw7ZlnbHD4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=bz21EeIbcmg:dpw7ZlnbHD4:F7zBnMyn0Lo" border="0"></img></a> </div>

Hungary: NBH rate decision
CB cut the base rate by 25bp, to 5.75% The monetary council of the CB cut the base rate by 25bp, to 5.75%. The decision did not come as a surprise, being in line with both our expectation and the market consensus. The statement of the council has again focused on two important areas. (1) The fundamental picture – according to the council, the Hungarian economy will recover from the downturn of 2009 in the second half of this year, mainly due a pick-up in exports, as external demand recovers. <p><a href="http://feedads.g.doubleclick.net/~a/1nhJdnzeaiBACpEfLHVbRMf6lFE/0/da"><img src="http://feedads.g.doubleclick.net/~a/1nhJdnzeaiBACpEfLHVbRMf6lFE/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/1nhJdnzeaiBACpEfLHVbRMf6lFE/1/da"><img src="http://feedads.g.doubleclick.net/~a/1nhJdnzeaiBACpEfLHVbRMf6lFE/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yUnegg9V5TI:tXP4IxaWGqI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yUnegg9V5TI:tXP4IxaWGqI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yUnegg9V5TI:tXP4IxaWGqI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=yUnegg9V5TI:tXP4IxaWGqI:F7zBnMyn0Lo" border="0"></img></a> </div>

Hungary: MNB cuts by another 25bp
Today the Hungarian central bank (MNB) cut its key policy rate by another 25 basis points – in line with both our and consensus expectations – bringing its key policy rate to 5.75%. Market reaction was fairly muted as the rate cut was expected. Details The decision to continue the monetary easing cycle has to be seen in light of the continued weakness of the Hungarian economy and the intention of the MNB to stimulate economic recovery. Nonetheless, some uncertainty about the decision was in <p><a href="http://feedads.g.doubleclick.net/~a/CQ6i6YaCGwWxHYU8A1HcPgJWW-4/0/da"><img src="http://feedads.g.doubleclick.net/~a/CQ6i6YaCGwWxHYU8A1HcPgJWW-4/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/CQ6i6YaCGwWxHYU8A1HcPgJWW-4/1/da"><img src="http://feedads.g.doubleclick.net/~a/CQ6i6YaCGwWxHYU8A1HcPgJWW-4/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1CvUYAuJLoE:j-zPsvcjiOA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1CvUYAuJLoE:j-zPsvcjiOA:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1CvUYAuJLoE:j-zPsvcjiOA:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=1CvUYAuJLoE:j-zPsvcjiOA:F7zBnMyn0Lo" border="0"></img></a> </div>

Hungary: CB cut the base rate by 25bp, to 5.75%
The monetary council of the CB cut the base rate by 25bp, to 5.75%. The decision was in line with expectations. The statement of the council will be published and the Governor’s press conference will start at 15. <p><a href="http://feedads.g.doubleclick.net/~a/wkuOtBGOzjkmLrPrzFUpYOKujc4/0/da"><img src="http://feedads.g.doubleclick.net/~a/wkuOtBGOzjkmLrPrzFUpYOKujc4/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/wkuOtBGOzjkmLrPrzFUpYOKujc4/1/da"><img src="http://feedads.g.doubleclick.net/~a/wkuOtBGOzjkmLrPrzFUpYOKujc4/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1beQEAIvNI4:yyC4wfVRnbs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1beQEAIvNI4:yyC4wfVRnbs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1beQEAIvNI4:yyC4wfVRnbs:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=1beQEAIvNI4:yyC4wfVRnbs:F7zBnMyn0Lo" border="0"></img></a> </div>

US: When is a rate hike not a rate hike?
The Fed surprised the markets Thursday and hiked the discount rate 25bps to 0.75%. Stocks and commodities declined and the USD rallied to a nine month high in reaction to the Fed's discount rate hike. Stocks and commodities rebounded from earlier losses and the dollar pared gains in reaction to Fed assurances that the discount rate hike was not a signal that the Fed is considering an imminent tightening of monetary policy. The Fed says that the rate hike was a technical action to start to <p><a href="http://feedads.g.doubleclick.net/~a/JA3bc_JEEFWH1m7bJdoGSHYxK38/0/da"><img src="http://feedads.g.doubleclick.net/~a/JA3bc_JEEFWH1m7bJdoGSHYxK38/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/JA3bc_JEEFWH1m7bJdoGSHYxK38/1/da"><img src="http://feedads.g.doubleclick.net/~a/JA3bc_JEEFWH1m7bJdoGSHYxK38/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FxSB904qP0o:0aPvFmdsajE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FxSB904qP0o:0aPvFmdsajE:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=FxSB904qP0o:0aPvFmdsajE:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=FxSB904qP0o:0aPvFmdsajE:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed Raises the Discount Rate: Return to Normalcy
With the war against the Great Recession over, our newly reappointed head of the Federal Reserve now seeks to take us back to normalcy in the financial markets. Let’s trust that he too ushers in a decade of prosperity. Return to Normalcy After World War I, American voters longed for a return to normalcy and elected Warren Harding whose administration began a decade of economic growth. For Ben Bernanke, the return to normalcy we expect will lead to at least two years of economic expansion but <p><a href="http://feedads.g.doubleclick.net/~a/Idsf8SiKYGFbYBKnJC8idAtMos8/0/da"><img src="http://feedads.g.doubleclick.net/~a/Idsf8SiKYGFbYBKnJC8idAtMos8/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Idsf8SiKYGFbYBKnJC8idAtMos8/1/da"><img src="http://feedads.g.doubleclick.net/~a/Idsf8SiKYGFbYBKnJC8idAtMos8/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=E9xi0lWMPTo:WY_h5oFwLF8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=E9xi0lWMPTo:WY_h5oFwLF8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=E9xi0lWMPTo:WY_h5oFwLF8:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=E9xi0lWMPTo:WY_h5oFwLF8:F7zBnMyn0Lo" border="0"></img></a> </div>

Russia: rate cut to stimulate growth
The Russian central bank (CBR) decided today to cut its refinancing rate by 25 basis points to 8.50%. The CBR is continuing with its monetary policy easing in order to stimulate the still weak economy. A strong rouble has contributed to keeping inflation on a downward trend and we see a limited upside risk on CPI. However, there is still some potential for the rouble to weaken. Thus, the central bank could be unwilling to bring the rate to a lower level. Inflationary pressures have abated <p><a href="http://feedads.g.doubleclick.net/~a/FehN1dZxEcFnUBzbMHVUY4U9bvQ/0/da"><img src="http://feedads.g.doubleclick.net/~a/FehN1dZxEcFnUBzbMHVUY4U9bvQ/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/FehN1dZxEcFnUBzbMHVUY4U9bvQ/1/da"><img src="http://feedads.g.doubleclick.net/~a/FehN1dZxEcFnUBzbMHVUY4U9bvQ/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=m51cICHJNRc:oXUetzuEWUM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=m51cICHJNRc:oXUetzuEWUM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=m51cICHJNRc:oXUetzuEWUM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=m51cICHJNRc:oXUetzuEWUM:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC: Fed normalizes discount rate spread
Fed hikes the discount rate from 0.5% to 0.75% This does not alter our outlook for the Fed funds rate More hikes in discount rate likely in the coming months Details Overnight the Federal Reserve Board announced an increase in the spread between the discount and the Fed funds rate spread from 25bp to 50bp effective from today. This leaves the discount rate at 0.75%, while the Fed funds rate is unchanged at 0-0.25%. Further, the maximum maturity for primary credit loan will be normalized from <p><a href="http://feedads.g.doubleclick.net/~a/8YuD9CsFYH6IZGBzMlEFmKzn9qw/0/da"><img src="http://feedads.g.doubleclick.net/~a/8YuD9CsFYH6IZGBzMlEFmKzn9qw/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/8YuD9CsFYH6IZGBzMlEFmKzn9qw/1/da"><img src="http://feedads.g.doubleclick.net/~a/8YuD9CsFYH6IZGBzMlEFmKzn9qw/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ODXVXVp2tg8:sxXvvkA3WMI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ODXVXVp2tg8:sxXvvkA3WMI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ODXVXVp2tg8:sxXvvkA3WMI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=ODXVXVp2tg8:sxXvvkA3WMI:F7zBnMyn0Lo" border="0"></img></a> </div>

US: Fed Ups Discount Rate 25 BPS to 75 BPS, Greenback Strengthens
The Fed moved to increase the discount rate, by 25 basis points to 75 basis points, in late NY afternoon trading following the close of exchanges in New York. It stressed that this was not a change to monetary policy or the outlook on the economy and is consistent with what was said in the January meeting of the FOMC. Therefore, this move was flagged already to the market, but the reaction was for the greenback to strengthen. The EUR/USD for instance broke below support at 1.3540.The Dollar <p><a href="http://feedads.g.doubleclick.net/~a/jB7AV8fJyaV-Nh6u4KEHq6JDUPo/0/da"><img src="http://feedads.g.doubleclick.net/~a/jB7AV8fJyaV-Nh6u4KEHq6JDUPo/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/jB7AV8fJyaV-Nh6u4KEHq6JDUPo/1/da"><img src="http://feedads.g.doubleclick.net/~a/jB7AV8fJyaV-Nh6u4KEHq6JDUPo/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=2dFlnx3_WDQ:_zD2ZiYFvEY:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=2dFlnx3_WDQ:_zD2ZiYFvEY:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=2dFlnx3_WDQ:_zD2ZiYFvEY:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=2dFlnx3_WDQ:_zD2ZiYFvEY:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes from January 26-27, 2010
Downside risks to recovery have diminished “a bit further” Labor market weakness remains a major concern Target rate will remain at 0%-0.25% for an extended period FOMC participants’ economic outlook remains unchanged from the previous meeting. They believe that recent economic data is, “in line with the expectations for moderate growth and subdued inflation in 2010 that they held when the Committee met in mid-December.” Furthermore, financial conditions continue to support economic growth. In <p><a href="http://feedads.g.doubleclick.net/~a/Z9WgqNCZDXnZdYj3-rHOO5tgXEM/0/da"><img src="http://feedads.g.doubleclick.net/~a/Z9WgqNCZDXnZdYj3-rHOO5tgXEM/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/Z9WgqNCZDXnZdYj3-rHOO5tgXEM/1/da"><img src="http://feedads.g.doubleclick.net/~a/Z9WgqNCZDXnZdYj3-rHOO5tgXEM/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=YGMM50bYRyk:9PWWy0wOS3g:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=YGMM50bYRyk:9PWWy0wOS3g:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=YGMM50bYRyk:9PWWy0wOS3g:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=YGMM50bYRyk:9PWWy0wOS3g:F7zBnMyn0Lo" border="0"></img></a> </div>

US: FOMC`s minutes
Fed Watch Minutes from the FOMC meeting, held on January 26 and 27, show that participants view on the economic outlook has not changed much since December 2009. In general, risks about the outlook for economic growth were seen as roughly balanced, even though, the weakness in the labour markets continued to be an important concern. Members of the Board of Governors and presidents of the Federal Reserve Banks now mostly see GDP growth in 2010 ranging between 2.8% and 3.5% compared to 2.5% and <p><a href="http://feedads.g.doubleclick.net/~a/bU6ePOccfQRXYot5c2eqOQBtiH8/0/da"><img src="http://feedads.g.doubleclick.net/~a/bU6ePOccfQRXYot5c2eqOQBtiH8/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/bU6ePOccfQRXYot5c2eqOQBtiH8/1/da"><img src="http://feedads.g.doubleclick.net/~a/bU6ePOccfQRXYot5c2eqOQBtiH8/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ybLp6dsXnT8:pSb-Wmn2v_4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ybLp6dsXnT8:pSb-Wmn2v_4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=ybLp6dsXnT8:pSb-Wmn2v_4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=ybLp6dsXnT8:pSb-Wmn2v_4:F7zBnMyn0Lo" border="0"></img></a> </div>

Preview: FOMC January Meeting Minutes
The FOMC kept the benchmark interest rate unchanged at 0-0.25% in January, although the decision was not a unanimous one. Hoenig, the Kansas City Fed head, dissented on FOMC language to keep rates low for an ‘extended period’, but not on the actual rate itself. Hoenig said in a press release that ‘financial conditions had changed sufficiently that the expectation of exceptionally low levels of the Federal funds rate for an extended period was no longer warranted’. Fisher later said he was <p><a href="http://feedads.g.doubleclick.net/~a/qX2Gaa3AiKMYZPA7SXmXKLcGSJA/0/da"><img src="http://feedads.g.doubleclick.net/~a/qX2Gaa3AiKMYZPA7SXmXKLcGSJA/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/qX2Gaa3AiKMYZPA7SXmXKLcGSJA/1/da"><img src="http://feedads.g.doubleclick.net/~a/qX2Gaa3AiKMYZPA7SXmXKLcGSJA/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1eG6eCO1WBY:Hc-Q8WY4lww:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1eG6eCO1WBY:Hc-Q8WY4lww:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=1eG6eCO1WBY:Hc-Q8WY4lww:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=1eG6eCO1WBY:Hc-Q8WY4lww:F7zBnMyn0Lo" border="0"></img></a> </div>

US: A roadmap for the Fed's exit
The Fed is moving towards an exit of its very easy monetary policy, and the first steps to reduce liquidity have already been taken There are several more steps on the road to the first fed funds rate hike, but the Fed will prepare markets well in advance. The unwinding of alternative easing measures has so far been smooth and we see the biggest risk for a destructive market reaction from the termination of the MBS/Agency purchase programme by end March. A surge in mortgage yields could <p><a href="http://feedads.g.doubleclick.net/~a/chC-1MGQWE8qODK_kth3izLNsh0/0/da"><img src="http://feedads.g.doubleclick.net/~a/chC-1MGQWE8qODK_kth3izLNsh0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/chC-1MGQWE8qODK_kth3izLNsh0/1/da"><img src="http://feedads.g.doubleclick.net/~a/chC-1MGQWE8qODK_kth3izLNsh0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o7zxSsnsg6M:wWjlZx4fTbs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o7zxSsnsg6M:wWjlZx4fTbs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=o7zxSsnsg6M:wWjlZx4fTbs:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=o7zxSsnsg6M:wWjlZx4fTbs:F7zBnMyn0Lo" border="0"></img></a> </div>

Bernanke Signals Fed May Raise Discount Rate
In testimony before the House Financial Services Committee, Bernankesaid that the outlook for monetary policy has not changed since theFOMC January meeting, and reiterated that low rates are warranted “foran extended period.” Bernanke said “”the economy continues to requirethe support of accommodative monetary policies. However, we have beenworking to ensure that we have the tools to reverse, at the appropriatetime, the currently very high degree of monetary stimulus.” Fed Targets <p><a href="http://feedads.g.doubleclick.net/~a/JHcP9aCxBLpf8xsehE2En48q84A/0/da"><img src="http://feedads.g.doubleclick.net/~a/JHcP9aCxBLpf8xsehE2En48q84A/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/JHcP9aCxBLpf8xsehE2En48q84A/1/da"><img src="http://feedads.g.doubleclick.net/~a/JHcP9aCxBLpf8xsehE2En48q84A/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=A4HvxLPz_KU:rIwADanKadk:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=A4HvxLPz_KU:rIwADanKadk:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=A4HvxLPz_KU:rIwADanKadk:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=A4HvxLPz_KU:rIwADanKadk:F7zBnMyn0Lo" border="0"></img></a> </div>

Bernanke outlines exit strategy tools
The interest rate on reserves could replace the fed funds rate as the primary monetary policy tool until conditions normalize The timeline will be dictated by economic and financial developments Bernanke outlined the tools available to the Federal Reserve to manage interest rates and reduce the large quantity of reserves held by the banking system in a testimony before the House Committee on Financial Services. Bernanke addressed the possibility of communicating monetary policy through the <p><a href="http://feedads.g.doubleclick.net/~a/19FxeXMevb20aJe9m4h37Jm-Xx0/0/da"><img src="http://feedads.g.doubleclick.net/~a/19FxeXMevb20aJe9m4h37Jm-Xx0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/19FxeXMevb20aJe9m4h37Jm-Xx0/1/da"><img src="http://feedads.g.doubleclick.net/~a/19FxeXMevb20aJe9m4h37Jm-Xx0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=KDxEvg1O_yc:Lqf9tI3UUIA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=KDxEvg1O_yc:Lqf9tI3UUIA:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=KDxEvg1O_yc:Lqf9tI3UUIA:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=KDxEvg1O_yc:Lqf9tI3UUIA:F7zBnMyn0Lo" border="0"></img></a> </div>

US: Fed Upgrades Economic Outlook, A Dissent on "Extended"
Today’s FOMC statement was more optimistic on the economy with emphasis on improvement in business and investment spending. “Subdued” inflation remains. Dissent brings into question the length of easy policy. Economic Outlook: Upgraded Economic activity “continued to strengthen” according to the FOMC statement. We would agree. Household spending continues to expand but with the drag of income, wealth and credit constraints. The story here though is the upgraded outlook for business spending in <p><a href="http://feedads.g.doubleclick.net/~a/jgvBK8Nyx-C65pusodBMYxn1aK4/0/da"><img src="http://feedads.g.doubleclick.net/~a/jgvBK8Nyx-C65pusodBMYxn1aK4/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/jgvBK8Nyx-C65pusodBMYxn1aK4/1/da"><img src="http://feedads.g.doubleclick.net/~a/jgvBK8Nyx-C65pusodBMYxn1aK4/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yyKB0xMEF-g:vn89H5VIrko:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yyKB0xMEF-g:vn89H5VIrko:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=yyKB0xMEF-g:vn89H5VIrko:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=yyKB0xMEF-g:vn89H5VIrko:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC: First hawk out of the cage
The FOMC kept policy rates and asset purchase programmes unchanged Growth assessment upgraded slightly, no change to the outlook Inflation still expected to remain subdued for some time The ‘extended period’ phrase remains in place, but Hoenig votes against the decision Language on asset purchases remains slightly open-ended Details There were only incremental changes to the growth section with minor upgrades to several passages in the assessment. Generally the language reflects more certainty <p><a href="http://feedads.g.doubleclick.net/~a/PisQbBiOhxrfHn6MwocBOArGSlk/0/da"><img src="http://feedads.g.doubleclick.net/~a/PisQbBiOhxrfHn6MwocBOArGSlk/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/PisQbBiOhxrfHn6MwocBOArGSlk/1/da"><img src="http://feedads.g.doubleclick.net/~a/PisQbBiOhxrfHn6MwocBOArGSlk/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=VW8q_HJMddM:ATRL0o0WPCM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=VW8q_HJMddM:ATRL0o0WPCM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=VW8q_HJMddM:ATRL0o0WPCM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=VW8q_HJMddM:ATRL0o0WPCM:F7zBnMyn0Lo" border="0"></img></a> </div>

PREVIEW: Fed January Rate Decision; Good things come to those who wait…apparently
Rate unchanged at 0-0.25% and keeps “extended period” statement MBS purchase program to expire in March as planned Fed to reiterate that majority of liquidity programs to expire at the end of this month Good things come to those who wait…apparently In its first meeting of 2010, the Federal Reserve is expected to leave interest rate unchanged, while acknowledging that the US economy had picked up and that the labor market decline is abating. Overall, despite several new voters (outgoing: Evans, <p><a href="http://feedads.g.doubleclick.net/~a/1LMUC84m8m_sOVfGuhuLOZFBT80/0/da"><img src="http://feedads.g.doubleclick.net/~a/1LMUC84m8m_sOVfGuhuLOZFBT80/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/1LMUC84m8m_sOVfGuhuLOZFBT80/1/da"><img src="http://feedads.g.doubleclick.net/~a/1LMUC84m8m_sOVfGuhuLOZFBT80/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Phnt0FCyo-M:_C52-RntkBY:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Phnt0FCyo-M:_C52-RntkBY:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=Phnt0FCyo-M:_C52-RntkBY:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=Phnt0FCyo-M:_C52-RntkBY:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC meeting January 27, no change expected
The FOMC will conclude a two-day policy meeting on Wednesday the 27th of January and announce its policy decision at 14:15 PM ET. The FOMC is widely expected to maintain steady rate policy and 0.0 to .25%. At the December FOMC meeting the FOMC concluded that economic conditions warrant maintaining yields a low level for an “extended period” and the economy is strengthening. The FOMC is expected to reaffirm commitment to maintaining low yields for an extended period at Wednesday's policy <p><a href="http://feedads.g.doubleclick.net/~a/VCcrpAa34lOeESy2ql4x2kdPlJo/0/da"><img src="http://feedads.g.doubleclick.net/~a/VCcrpAa34lOeESy2ql4x2kdPlJo/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/VCcrpAa34lOeESy2ql4x2kdPlJo/1/da"><img src="http://feedads.g.doubleclick.net/~a/VCcrpAa34lOeESy2ql4x2kdPlJo/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=buzNAOEUezA:j8MSXUZtW5A:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=buzNAOEUezA:j8MSXUZtW5A:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=buzNAOEUezA:j8MSXUZtW5A:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=buzNAOEUezA:j8MSXUZtW5A:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC December 16th 2009
Economic and financial conditions improve Fed maintains its outlook of low inflation In this environment, Fed funds are likely to remain low for a prolonged period As in previous statements, FOMC members consider that “economic activity is likely to remain weak for a time”. However, Fed continues to improve its assessment on the economic outlook and made three major changes to the economic activity paragraph in its latest statement. The first one indicates that “Financial market conditions <p><a href="http://feedads.g.doubleclick.net/~a/G-nDUcCDrO1SbJOyZw7n5Yb8iQ4/0/da"><img src="http://feedads.g.doubleclick.net/~a/G-nDUcCDrO1SbJOyZw7n5Yb8iQ4/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/G-nDUcCDrO1SbJOyZw7n5Yb8iQ4/1/da"><img src="http://feedads.g.doubleclick.net/~a/G-nDUcCDrO1SbJOyZw7n5Yb8iQ4/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e6NbkOSYVI4:_X0uolmhELM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e6NbkOSYVI4:_X0uolmhELM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=e6NbkOSYVI4:_X0uolmhELM:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=e6NbkOSYVI4:_X0uolmhELM:F7zBnMyn0Lo" border="0"></img></a> </div>

US: Parsing the Fed
If there was any anticipation for a change in today's FOMC statement it probably focused on the term "extended period" for the fed funds rate. That anticipation, weak as it was, has been thwarted. "Extended period" remains. The Fed Board and Mr. Bernanke are clearly not ready to remove the liquidity support from the US economy. Do they have worries that are unknown to the markets and the public? Probably not, but their uncertainly about the course of the economy is clear from their actions; <p><a href="http://feedads.g.doubleclick.net/~a/zJmfnr5IRoJZuNiq-lAropnEJFg/0/da"><img src="http://feedads.g.doubleclick.net/~a/zJmfnr5IRoJZuNiq-lAropnEJFg/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/zJmfnr5IRoJZuNiq-lAropnEJFg/1/da"><img src="http://feedads.g.doubleclick.net/~a/zJmfnr5IRoJZuNiq-lAropnEJFg/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jnezGRVTNTs:JPUWELTSgHo:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jnezGRVTNTs:JPUWELTSgHo:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jnezGRVTNTs:JPUWELTSgHo:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=jnezGRVTNTs:JPUWELTSgHo:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes from November 3-4, 2009
Economic growth is sustainable; labor market remains a risk Inflation will remain subdued in the near term Target rate will remain at 0%-0.25% for an extended period FOMC participants expect economic growth to continue into the fourth quarter. Better than expected spending and production data prompted an upward revision of the staff’s forecast for 4Q09 growth, but 2010 and 2011 projections remained unchanged. Better alignment of business inventories with sales, growth in consumer spending <p><a href="http://feedads.g.doubleclick.net/~a/VSQZRfQHzSX5apOmeF3W6SyDwsc/0/da"><img src="http://feedads.g.doubleclick.net/~a/VSQZRfQHzSX5apOmeF3W6SyDwsc/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/VSQZRfQHzSX5apOmeF3W6SyDwsc/1/da"><img src="http://feedads.g.doubleclick.net/~a/VSQZRfQHzSX5apOmeF3W6SyDwsc/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=srVYx57LlSQ:v_D51QIdjdg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=srVYx57LlSQ:v_D51QIdjdg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=srVYx57LlSQ:v_D51QIdjdg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=srVYx57LlSQ:v_D51QIdjdg:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed funds rate will remain low for a prolonged period
Target interest rate maintained at 0.0-0.25% Economic slack justifies holding rates low as recovery begins FOMC economic outlook improved but challenges remain The primary take-away from the FOMC’s statement is that it will likely continue to hold the fed funds rate at a low level for a prolonged period of time even as the recovery takes hold. While the statement maintained the language stating that, “economic conditions… are likely to warrant exceptionally low levels of the federal funds rate <p><a href="http://feedads.g.doubleclick.net/~a/eKfphLpL0K0wqostODL2_O85HM0/0/da"><img src="http://feedads.g.doubleclick.net/~a/eKfphLpL0K0wqostODL2_O85HM0/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/eKfphLpL0K0wqostODL2_O85HM0/1/da"><img src="http://feedads.g.doubleclick.net/~a/eKfphLpL0K0wqostODL2_O85HM0/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RMNCtig-X4Y:_k5CI-4B0_Q:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RMNCtig-X4Y:_k5CI-4B0_Q:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=RMNCtig-X4Y:_k5CI-4B0_Q:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=RMNCtig-X4Y:_k5CI-4B0_Q:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes from September 22-23, 2009
Staff revised GDP forecast upward; labor market weak Inflation likely to remain subdued; exit strategies discussed Target rate will remain at 0%-0.25% for an extended period Recent consumer spending and housing market data show initial signs of recovery. Despite the staff’s upward revision of GDP growth, unemployment remains high and employment growth will remain low. “Participants emphasized that the labor market remains weak,” and they expect only “moderate growth in consumer spending.” Some <p><a href="http://feedads.g.doubleclick.net/~a/cpTuTnSmJVKBW1uXuAZvUuu0kvw/0/da"><img src="http://feedads.g.doubleclick.net/~a/cpTuTnSmJVKBW1uXuAZvUuu0kvw/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/cpTuTnSmJVKBW1uXuAZvUuu0kvw/1/da"><img src="http://feedads.g.doubleclick.net/~a/cpTuTnSmJVKBW1uXuAZvUuu0kvw/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=w7jHW2dN_Fs:AfvGaM3PTm0:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=w7jHW2dN_Fs:AfvGaM3PTm0:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=w7jHW2dN_Fs:AfvGaM3PTm0:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=w7jHW2dN_Fs:AfvGaM3PTm0:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes August 11-12, 2009
• Economic recovery is expected in 2H09, but challenges remain • Downside risks to inflation persist • Target rate will remain at 0%-0.25% for a prolonged period The FOMC expressed more confidence in its outlook that economic growth would take hold in the second half of 2009, although it believes that risks remain. Furthermore, members agreed that the pace of recovery would pick-up in 2010, but they expressed uncertainty about the strength of the rebound, citing consumer spending and credit <p><a href="http://feedads.g.doubleclick.net/~a/tNNf35V6TrmJS_Z88mw5iNsSCfs/0/da"><img src="http://feedads.g.doubleclick.net/~a/tNNf35V6TrmJS_Z88mw5iNsSCfs/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/tNNf35V6TrmJS_Z88mw5iNsSCfs/1/da"><img src="http://feedads.g.doubleclick.net/~a/tNNf35V6TrmJS_Z88mw5iNsSCfs/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MK2pbRvZ_ZM:-SY6hjBd1j4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MK2pbRvZ_ZM:-SY6hjBd1j4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=MK2pbRvZ_ZM:-SY6hjBd1j4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=MK2pbRvZ_ZM:-SY6hjBd1j4:F7zBnMyn0Lo" border="0"></img></a> </div>

Fed improves outlook while maintaining target rates
Economic activity is stabilizing, but risks remain Fed will slow Treasury purchases to the end of October Outlook still warrants low rates for a prolonged period Given current economic conditions, the FOMC will maintain its target interest rate at 0% to 0.25%. In line with recent data, the committee stated that “economic activity is leveling out,” which is a more positive outlook than the previous meeting’s message that contraction was slowing. Nevertheless, ongoing risk could cause economic <p><a href="http://feedads.g.doubleclick.net/~a/DUTKPxY_DjHNeAxqY85-woYFWwg/0/da"><img src="http://feedads.g.doubleclick.net/~a/DUTKPxY_DjHNeAxqY85-woYFWwg/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/DUTKPxY_DjHNeAxqY85-woYFWwg/1/da"><img src="http://feedads.g.doubleclick.net/~a/DUTKPxY_DjHNeAxqY85-woYFWwg/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=QjCfzuNGxa8:ZvYbfwOQed8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=QjCfzuNGxa8:ZvYbfwOQed8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=QjCfzuNGxa8:ZvYbfwOQed8:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=QjCfzuNGxa8:ZvYbfwOQed8:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes June 23-24, 2009
Economic activity has stabilized further, but risks remain Core inflation is expected to remain low Committee will maintain the target rate of 0 to 0.25% The FOMC announced that economic contraction had subsided and downside risks to economic growth had diminished, but threats remain. Participants also judged that financial market developments have been positive, but could be attributed to support from government programs rather than solid fundamentals, and credit markets remain tight amid <p><a href="http://feedads.g.doubleclick.net/~a/pib7nQSAg70vI4fvaNwSTn7Alcw/0/da"><img src="http://feedads.g.doubleclick.net/~a/pib7nQSAg70vI4fvaNwSTn7Alcw/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/pib7nQSAg70vI4fvaNwSTn7Alcw/1/da"><img src="http://feedads.g.doubleclick.net/~a/pib7nQSAg70vI4fvaNwSTn7Alcw/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=TwwAXTIF44o:ZIMRFFl1dvw:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=TwwAXTIF44o:ZIMRFFl1dvw:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=TwwAXTIF44o:ZIMRFFl1dvw:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=TwwAXTIF44o:ZIMRFFl1dvw:F7zBnMyn0Lo" border="0"></img></a> </div>

BOE: likely to expand QE to GBP 150bln from GBP 125bln
BOE likely to expand QE to GBP 150bln from GBP 125bln Some analysts think the BOE may request to up its ceiling beyond GBP 150bln All analysts expect BOE to leave interest rates unchanged at 0.50% It’s a near certainty that record low interest rates at today’s meeting will be left unchanged, with the focus solely on any potential extension of the BOE’s QE programme. The consensus is for the BOE to increase the size of its current QE programme by GBP 25 bln, which means asset purchases will <p><a href="http://feedads.g.doubleclick.net/~a/3uRhso6NdznzXCegdMlJxNtYMSA/0/da"><img src="http://feedads.g.doubleclick.net/~a/3uRhso6NdznzXCegdMlJxNtYMSA/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/3uRhso6NdznzXCegdMlJxNtYMSA/1/da"><img src="http://feedads.g.doubleclick.net/~a/3uRhso6NdznzXCegdMlJxNtYMSA/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=C7cs5fvvi-0:Spri354XnTk:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=C7cs5fvvi-0:Spri354XnTk:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=C7cs5fvvi-0:Spri354XnTk:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=C7cs5fvvi-0:Spri354XnTk:F7zBnMyn0Lo" border="0"></img></a> </div>

Target rates and monetary easing levels are maintained
Pace of economic contraction is slowing No changes to the securities purchase program Rates likely to remain low for a prolonged period of time The FOMC decided to maintain its target interest rate at 0% to 0.25%. In light of data released during the intermeeting period, the FOMC acknowledged that the pace of economic contraction is slowing, citing the recent improvements in the financial markets, further signs of stabilization in household spending and better alignment of inventories with <p><a href="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/0/da"><img src="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/1/da"><img src="http://feedads.g.doubleclick.net/~a/bixbqRbbLnK7b63AHDGDnRlmacU/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=jZSf-uhei2I:6VdjHprK-2g:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=jZSf-uhei2I:6VdjHprK-2g:F7zBnMyn0Lo" border="0"></img></a> </div>

FOMC Minutes April 28-29, 2009
Signs of stabilization in economic and financial activity Risks of deflation have diminished Interest rates are expected to remain unchanged The FOMC agreed that the near-term economic outlook has improved, but there are still “significant downside risks.” In addition, financial market conditions have strengthened but the system remains vulnerable to shocks and credit markets are still weak. Staff revised up its forecasts for 2H09 and 2010 after revising them down in March in response to <p><a href="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/0/da"><img src="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/0/di" border="0" ismap="true"></img></a><br/> <a href="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/1/da"><img src="http://feedads.g.doubleclick.net/~a/pP764U93kAeMRlyFllhyarodzJs/1/di" border="0" ismap="true"></img></a></p><div class="feedflare"> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.fxstreet.com/~ff/fundamental/interest-rates?a=5hyMqCtnVf0:vHxqyTQ6kow:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/fundamental/interest-rates?i=5hyMqCtnVf0:vHxqyTQ6kow:F7zBnMyn0Lo" border="0"></img></a> </div>