March 5. As predicted earlier ECB has reduced its key interest rate by half percent to 1.5 percent. This is the lowest since ECB took controll of the Monetary policy in 1999 to combat recession since world war 2.
Monthly Archive for March, 2009
March 5. Gold rose first time in nine days after falling from $1006 an ounce to $ 906 an ounce in eight session since Feb 20 till yesterday. This is another opportunity to buy Gold as analysts are giving it prefrence over Bonds and equities. Gold rose to $ 918 an ounce before Newyork opening.
March 5. Speculation are high that Mr. Trichet, prseident of ECB may advise to policy makers to keep on reducing the interest rate of Euro. Euro was three months low against the dollar $1.2565 in London.
It is predicted that Euro may fell to $1.2500 at the end of the quarter.
March 4. Nine member panel headed by Bank of England’s Governor Mr. Marvyn King reduced the interest rate of British pound to 0.5% , lowest since the birth of Bank of England in 1694.
Mr. Marven king wrote a letter to Chancellor of exchequer on February 17 , stating that “In these highly uncertain times, there are merits to stimulating the economy through a variety of different channels”,published today. The Bank will start purchasing 75 billion pounds in assets, printing money to fight the
recession.
March 3. Federal Reserve Chairman Mr. Ben S. Nernanky says that reasonable financial stability is subject to the sustainable recovery. He said Policy makers may need to expand Aid to the Banking system beyond the $ 700 Billion al-ready approved and take other measures .
President Obama is seeking $ 750 Billion in new Aid to the Financial Industry in up coming First Budget.