Macroeconomics
the Federal Reserve raises key interest rate by 0.25 percentage points and alerts a further three interest rate hikes to next year.
the Article is added to your reading list.
The us central bank the Federal Reserve has decided to raise the key rate by 0.25 percentage points to the interval between 0,5 to 0,75 per cent, says the central bank in a press release Wednesday at 20: 00 Norwegian time.
the Decision was unanimous, says the central bank.
the Decision was expected. In terminmarkedet was it priced into a preponderant probability for the rate increase. All of the 103 the analysts that Bloomberg News was in contact with in advance of rentebeskjeden expected increase in interest rates.
the Members of the central bank’s rentekomité the FOMC adjusts at the same time up the estimates for the renteutviklingen next year. The average among the members now see for themselves that there are three interest rate hikes in 2017, against the previous estimates of the two rate increases.
the Second rate hike in one year
It is pretty exactly one year since the last time interest rates were changed. In December last year was the interest rate set up by 0.25 per cent from the record low level between zero and 0.25 percent. It was the first rentendringen in the entire seven years.
at the time, The waiting members in the central bank’s rentekomité the FOMC that it would be carried out throughout the four interest rate hikes in the year.
Later, however, renteprognosen been revised down and the committee has noted that it wanted to see clearer evidence that the economy is on the path towards the goals and objectives for rentesettingen.
Two-mandate
the central Bank has a dual mandate for the rentepolitikken: Full employment and that inflation, which is a measure of the overall inflation in the economy, should be at around two percent over time.
The last few months, there have been signs that the economy at least is in the process of moving in the direction of one of the two regional authorities: In november dropped the unemployment rate in the united STATES to 4.6 percent, the lowest since 2007.
After that the rate of inflation in the course of last year fell all the way down to zero, have it taken gradually again in the course of the current year. It is, nevertheless, still a way below the target of two per cent: the central bank’s preferred measure of inflation, the PCE index, was 1.4 per cent in October, according to the latest available statistics from The u.s. department of commerce.
Change projections
the Members of the rentekomiteen see for themselves that the unemployment rate falls further in the next year to an average of 4.5 per cent. The previous estimate was 4.6 per cent.
at the same time see the central bank increasing inflation so that prices as measured by the PCE index increases 1.9 per cent on average next year compared with this year and when the goal of two per cent in 2018.
the members of the Committee also adjusts up estimate for growth this year and next year compared with the previous forecast from september. In the years waiting for the members an economic growth of 1.9 per cent, which takes up to an additional 2.1 per cent next year. In 2018, the estimated growth of 2.0 per cent.
more Expensive dollar
the U.s. dollar strengthened on a broad basis after the interest rate decision was known.
Against the Norwegian krone has the dollar gone around eight cents from 8,46 to 8,54 million. Against the euro boosted the dollar around 0.7 per cent and a euro cost at the time of writing 1,0582 dollars.
In the interest market, the interest rate rises on u.s. government bonds with ten years maturity by around 0.05 percentage points to 2.5 per cent.
In the equity markets in the united STATES turned the three benchmark indexes down after rentebeskjeden and the prognosis for the further development in the key interest rate was known.
While the indexes before the decision was close to yesterday’s record high sluttnoteringer, they are now down around half a percent.
the Fed still adds up to the gradual rentehevinger. We expect that the next elevation will come in June next year, writes senior economist Knut A. Magnussen in an update from DNB Markets.
He adds that there is the possibility that the next rate hike may come earlier than the investment firm waiting.
No comments:
Post a Comment