Posts Tagged "GDP"

Kiwi in Flight

Posted by on Mar 14, 2014 in Commentary, Featured, Market News

It’s been a long time coming. Of the major currencies commonly traded, there have been no interest rate increases since 2010 when Australia last increased its overnight rates. Australian rates didn’t last long at those levels and were reduced in stages soon afterwards, matching the other major economies. This time though, things feel different. On Wednesday evening this week, the Reserve Bank of New Zealand announced a rise in interest rates from 2.5% to 2.75% (well, Thursday morning in New Zealand at the time). An interest rate increase in any of the major currencies is as rare as New...

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Kicking the can

Posted by on Nov 29, 2012 in Commentary, Featured, Market News, News

Kicking the can

When it comes to kicking the can down the road, European ministers have shown the world their expertise. Aligned with their ability to fudge issues, it gives markets and commentators plenty of material to write about. This weeks further instalment of the Greek bailout is a case in point. After months of negotiation and discussion, including an open spat with the IMF, European institutions handed over several billion more Euros to Greece as part of their international bailout. IMF participation at this time was deferred. Greece now has the liquidity to meet it’s immediate financial...

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Sovereign debt

Posted by on Nov 26, 2012 in Commentary, Market News, News

Sovereign debt

So Moody’s took the decision to downgrade the sovereign debt ratings for France last week. This is the second ratings agency to strip France of it’s AAA rating, following the decision by Standard & Poors in January. That just leaves Fitch of the major ratings agencies having France with a AAA rating. One of the reasons cited was the level of debt as a percentage of GDP (Gross Domestic Product), which for France, is estimated at 90%. France has made several budget moves in an effort to get current year borrowing down to 3% of GDP for 2013, in line with the requirements of the...

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