Daily Archives: August 23, 2010

Israel is the latest in a long line of rate-raisers to keep interest rates on hold. Australia maintained its cash rate at 4.5 per cent on August 3; South Korea held at 2.25 per cent a week later. Sweden is expected to hold at its September 1 meeting and Brazil expects to hold till at least December. Malaysia, a three-time rate-raiser, is expected to hold on September 2.

Plenty of other countries are holding – or, indeed, cutting – but that is less of a surprise, since in these countries, rates haven’t risen since the financial crisis. Mexico and Colombia both held on Friday and Poland is expected to do likewise tomorrow. The Philippines, which had been expected to raise rates at its August meeting, is now expected to holdRead more >>

The Swiss franc is close to record highs against the euro, trading today at 1.3103, just shy of July’s record high of 1.3070.

Location and stability are giving the currency a double boost, say analysts. Read more >>

A double-dip recession, inflation at 6 per cent and interest rates at 8 per cent by 2012 – that’s the scenario sketched out by a think tank chief economist over the weekend.

Andrew Lilico, chief economist of the Policy Exchange, has bravely laid out his view of the likely path for the UK economy over the next few years. There are, as he puts it, “huge uncertainties in all directions”. Read more >>