Action time?
Article Abstract:
There are disagreements on whether US interest rates will be raised in Nov 1997. Some analysts see the economy as growing at levels that are unsustainable, with gross doemstic product up by 3.6% in 2nd qtr 1997 rather than 2.2% as originally calculated. Others point to low inflation and a likelihood that output growth may drop due to excess stocks. Investment in capacity may mean that demand will be met. US interest rates could thus stay stable for the 12 months from Sep 1997.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Fears wrong
Article Abstract:
ING Barings sees US interest rates as unlikely to rise. Rates could drop, with long bond yields down to some 6% by Sep 1998. Economic activity is likely to decelerate, and the potential growth rate for the economy may be higher than previously calculated, at some 2.75% instead of 2.25%. Investment spending appears to be higher than previous estimates and the productivity of capital has improved. Globalisation has also tended to depress wage inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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