Post-Brexit, markets now focus on prospects of rates staying low
US STOCKS rebounded last week to finish higher than where they were before the shock Brexit vote as traders focused on the silver lining in the midst of a very cloudy outlook - lower interest rates for longer.
Already, Bank of England governor Mark Carney has said that he will cut interest rate to offset the impact of Brexit. The vote also changed the interest-rate outlook in the eurozone, and, most importantly, in the US - as Dallas Federal Reserve president Robert Kaplan has repeatedly noted, world markets are now so intertwined that the central bank cannot simply ignore Brexit.
The Fed was expected to resume hikes in September, but now will likely hang up its spurs for the year. The weakness of sterling - which hit a three-decade low last week - and euro in the wake of the vote has caused anothe…
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Explosions in Iran, US media reports Israeli strikes
US veto sinks Palestinian UN membership bid in Security Council
Pro-China local leader ousted in Solomon Islands election
Japan‘s March inflation slows to 2.6%, eyes on BOJ move
S&P downgrades Israel rating on heightened geopolitical risk
‘We have our jury’: panel selected for Trump criminal trial