The strong showing came amid talk of interest rate cuts in the United States and Britain.
In other words, don't expect any more interest rate cuts for the time being.
Despite three baby-step interest rate cuts, the Federal Reserve is as deflationary as ever.
The Fed declined to cut interest rate cuts at its Aug. 7 policy meeting.
Fed interest rate cuts take some number of months to wash through the economy, typically six to nine.
He expects further substantial interest rate cuts in the course of the year.
This latest report could cloud hopes for more aggressive interest rate cuts from the US central bank, the Federal Reserve.
The Fed put an end to seven straight interest rate cuts at its last Board of Governors meeting in April.
Borrowers will be able to negotiate better terms because of the interest rate cuts from June and July of this year.
Analysts say investors are increasingly putting their money into stock markets because interest rate cuts had made the return on bonds appear unattractive.
"Historically, Fed action and interest rate cuts have played an important bullish role in bringing past bear markets to an end, " says Stack.
The British Bankers' Association said the interbank cost of borrowing overnight had fallen - a day after interest rate cuts and governments provided additional liquidity.
This included two interest rate cuts and lowering the amount of of money that banks need to keep in reserve in a bid to boost lending.
There is room for further interest rate cuts, but Salomon Smith Barney's economist in Singapore, Arup Raha, points out that such cuts have not worked so far.
But some analysts said the summit was long on promises and short on action - as there was no clear pledge for co-ordinated tax and interest rate cuts.
However, the IoD said that aggressive interest rate cuts by the Bank of England last year coupled with rising public spending should stave off a recession this year.
Recently, South Korea and Australia surprised with interest rate cuts.
After weeks of speculation, Brazil's president-elect Dilma Rousseff has finally confirmed that she will be changing the central bank's governor, paving the way for big interest rate cuts.
Mr. GREG MC BRIDE (Financial Analyst, Bankright.com): The biggest beneficiaries of the Federal Reserves repeated interest rate cuts will be home owners that have adjustable rate mortgages due to reset in 2008.
The Federal Reserve chairman, speaking in Germany on Friday, left open the door to new interest rate cuts as U.S. retail sales data offered a desultory view of the American economy.
In addition, several of the world's central banks, including the U.S. Federal Reserve and the European Central Bank, took the unprecedented step of synchronizing interest rate cuts to kickstart credit markets.
Finance ministers from the U.S., Canada, Britain, France, Germany, Italy and Japan will meet in Washington on Friday to consider responses, including coordinated interest rate cuts, to the global credit crisis.
All this despite a slew of government interventions this week, including synchronized 50-basis-point interest rate cuts by the Federal Reserve, the European Central Bank and several other central banks, including China's.
Neither could interest rate cuts coax banks, which are currently re-evaluating risk and keeping a tight grasp on their balance sheet, to be more generous in their lending to house buyers.
The Item Club also says that the government's choices include sticking to the current inflation target of 2% - which could mean no more interest rate cuts for some time, and therefore lower economic growth.
As the Italian economy slows, as many expect it will, the ECB may be forced to expand its balance sheet again with interest rate cuts and possibly some form of sovereign bond purchasing, which we ever more ironically refer to as QE.
FORBES: Outlook For A Weaker Euro As Concern Moves Toward Rome
Meanwhile, Government-owned Northern Rock cut its Standard Variable Rate by 0.1% on Monday, its first move after the Bank of England cut base rates by 0.25% 11 days ago, and more than a week after the chancellor said banks should pass on interest rate cuts to homeowners.
That can lead it to resist the interest-rate cuts which some are now urging on it.
应用推荐