Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| May 16, 2008 | | Spread betting and contracts for differences on interest rates | Spread bets and CFDs on interest rates should consider the Libor rate in Britain. It continues to rise as the Bank of England looks less likely to cut interest rates in the near futures, thanks to a recent inflation report.
As inflation remains a concern, the Bank of England is less likely to cut interest rates, even as signs of an economic slowdown prevail. Forbes reports on the Bank of England and interest rates:
Markets had been expecting
the central bank might cut rates by a quarter point to 4.75 percent
next month, but these hopes have been quashed after the BoE warned in
its quarterly Inflation Report on Wednesday that annual CPI inflation could reach near 4.00 percent by the autumn. | | |
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