.. the much awaited FED day is here today wednesday.. i had read of interest rate projections for the next 3 yrs with a target of 2.25% .. the expectations are a rate increase of .25 today on the low side with up to .50 on the high side .. for 2017 the interest rate should be a little over 1%.. with anywhere between 2 to 3 rate increases.. in 2018 the target is 2%.. 2019 at least 2.25% or better..
it looks like several increases using .25 increments.. over the next few years..
these rate increases will force the EU to follow the same tracking direction.. or risk furthering devaluation of the euro or the £ which is not likely to follow..
what this boils down to is the end of cheap money for now.... higher mortgage rates.. credit card rates.. this should be positive for banks.. less worry about the effects of negative interest rates upon banks.. also.. a higher NIM allows space for a dividend.. more price stability for share prices..
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.