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Interest rate to stay low till 2015

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1st Gear

http://www.dailymail.co.uk/news/article-21...e-low-2015.html

http://www.businesstimes.com.sg/premium/ec...s-low-till-2015

 

Published July 10, 2012

Fed seen holding rates low till 2015

 

[sINGAPORE] Goldman Sachs Group and Bank of America say a weaker-than-forecast June jobs gain in the US will lead the Federal Reserve to keep its benchmark interest rate at almost zero until mid-2015.

 

The Fed, which has pledged to hold the rate low through at least late 2014, will amend its so-called forward guidance before deciding on a new round of bond purchases, according to the companies. Goldman and BofA are two of the 21 primary dealers that trade directly with the central bank.

 

"The 'late 2014' formulation has now 'aged' by six months since it was first adopted, but the economy still looks no better," Jan Hatzius, chief economist at Goldman Sachs in New York, wrote in a report Sunday. The central bank may announce the change as soon as its next policy meeting July 31 to Aug 1, Mr Hatzius wrote.

 

Chairman Ben Bernanke faces jobs growth that slowed in the second quarter to one-third the pace of the prior three months. The gain in June was 80,000, the government reported July 6, versus 100,000 projected by a Bloomberg News survey of economists. Mr Bernanke hasn't ruled out more bond purchases, and said June 20 that more easing probably will be needed unless there is "sustained improvement in the labour market".

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1st Gear

Look like inflation is going to stay high for the next few yrs.

And the promise of interest rate staying low till 2015 is going to drive the pte property mkt higher in the next few mths. Cant say the same with public ones because of increasing number of bto and the fact that 1 family can only have 1.

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Neutral Newbie

i agree.

 

I have a very reliable and trusted "insider" news that interest rates will not move up for the next 2 years.

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2nd Gear

Great...just nice for me to take a loan to buy Hillier.

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5th Gear

i agree.

 

I have a very reliable and trusted "insider" news that interest rates will not move up for the next 2 years.

 

FED says that. It's a public already, since last year. -_-

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1st Gear

Last year, Fed only committed to low interest rate till 2014. Yesterday news is till 2015. It a new news. :)

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5th Gear

Look like inflation is going to stay high for the next few yrs.

And the promise of interest rate staying low till 2015 is going to drive the pte property mkt higher in the next few mths. Cant say the same with public ones because of increasing number of bto and the fact that 1 family can only have 1.

With this, prices will come crumbling down when it reaches this peak peak cycle [laugh] and interest rates creep up up

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