Outlook for Interest Rates in Europe and Us

In: Business and Management

Submitted By achawo
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At the beginning of September 2015, the European Central Bank maintain its key rate unchanged at 0.05%, its lowest level at which was reached in September 2014. This policy aims to stimulate investment, consummation, and reduce excess savings, and finally to boost growth in Europe.
But the European Central Bank has also lowered this month its inflation and growth forecasts in the Eurozone, citing weakness in oil prices, the decline in global demand, but also concerns about emerging markets, and new risks from the slowdown in China.
So the interest rates will certainly remain at their historic lows for several more months in Europe.

On the contrary, in the US, due to the improved economic situation and growth prospects, raising interest rates by the Fed is inescapable, and will certainly take place before the end of 2015.
The financial markets consider that this increase could be decided at the next meeting of the Monetary Policy Committee of the Fed on 16 and 17 September. Many analysts see the later meetings in October and December, due to signs of a slowdown in the Chinese economy that shook the financial markets since mid-August.

Sources: http://www.economist.com/blogs/economist-explains/2015/08/economist-explains-21 http://www.armstrongeconomics.com/archives/tag/interest-rates

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