One plays, two hold - Interest and exchange rate forecast
With the Eurozone recession of 2012 encroaching on 2013, the European Central Bank (ECB) played its hand in May in a bid to boost the fortunes of the beleaguered single currency area. Not only did the ECB cut its main interest rate to 0.5%, it also provided additional support for the banking sector as it seeks to boost much needed lending.
10 May 2013
The cut also took the shine off the euro which should help exporters, but it’s the yen which has seen most of the action in recent months. Meanwhile, policy was on hold at the Bank of England and the US Federal Reserve.
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