Interest and exchange rate forecast


Interest and exchange rate forecast

There has been something of a transatlantic divide developing over recent months.

12 March 2012

Data in the US continue to point to a pick-up in economic momentum, with recent trends in the labour market particularly encouraging. This recovery comes from a low base, however, with significant uncertainty remaining over the housing market and fiscal outlook.

Conditions in Europe are even more challenging. Policy makers continue to fight fires with a second Greek bailout finally agreed and the ECB injecting more liquidity. In this environment, policy rates are now expected to remain on hold until 2015.

interest-exchange-rate-mar-2012.pdf
Interest and exchange rate forecast - March 2012 (PDF 53KB)

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