Excerpt from: Spot Forex
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| August 07, 2008 | | Spread bets and CFDs on interest rates | Spread betting and contracts for differences should consider that, once again, the European Central Bank and the Bank of England have left their interest rates unchanged.
Both the BOE and the ECB have to consider the same reasons that kept the US interest rate steady as well:
- Slowing growth means that hikes to interest rates are impractical.
- Rising inflation prevents cuts to interest rates from being effective for the economy.
In the end, the best many central banks can hope for is to use rhetoric to influence the markets, while they sit tight and hope inflation moderates and the global economic slowdown comes to an end.
| Topic Tags: Bank of England, CFDs, contracts for differences, interest rates, spread bets, spread bets interest rates, spread betting, spread betting European Central Bank rates | |
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