Norway's central bank on Wednesday left its key interest rate unchanged at 1.75%, as expected, but said its analysis indicates that rates should be raised gradually after March 24.
The RBA held rates steady yesterday at 3.75% citing the tightening of Chinese monetary policy and the desire to see ho the December increase is accepted in the economy.
Clearly, there is a view that China liquidity will have an effect in other parts of the world. (I thought that role was reserved for the Fed, but the world is changing.) Who wants to tighten in a weak global economy especially if there may be tightening by a major export player - China. The strong drumbeat of economist who see exit strategies across the G10 in 2010 may want to get more conservative.
The RBA held rates steady yesterday at 3.75% citing the tightening of Chinese monetary policy and the desire to see ho the December increase is accepted in the economy.
Clearly, there is a view that China liquidity will have an effect in other parts of the world. (I thought that role was reserved for the Fed, but the world is changing.) Who wants to tighten in a weak global economy especially if there may be tightening by a major export player - China. The strong drumbeat of economist who see exit strategies across the G10 in 2010 may want to get more conservative.
No comments:
Post a Comment