by Ntombi Malatsi | Feb 9, 2019 | ECONOMIC NEWS
About Bank of England (BOE)
Bank rate 0.75%
Governor Mark Carney
Head quarters Thread needle Street, London
What is Bank of England?
Bank of England is a Central Bank of the United Kingdom which was formed in 1694. Bank of England is responsible for setting the Bank Rates and also to maintain the Monetary Policy. Bank of England does not hold accounts for the public or issue loans to the public. BOE is usually priced in and overshadowed by a Monetary Policy Summary, which focuses more on the future. BOE Interest Rates is the rate at which the bank lends to financial institutions over night. Short term Interest Rates are a very important factor in currency valuation.
Why do Central Banks hike the Interest Rates?
When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate)
Why do Central Banks cut the Interest Rates?
The Central bank may cut the Interest Rates to encourage people to borrow more money at a lower rate, be it for new houses or businesses. The aim is to also make saving money less attractive as the returns are lower when the rates are cut.
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Below is BOE’s annual schedule.
by Ntombi Malatsi | Feb 3, 2019 | ECONOMIC NEWS
Economic News To Watch This Week
by Ntombi Malatsi | Feb 3, 2019 | ECONOMIC NEWS
What is Consumer Price Index?
Consumer Price Index (CPI) is the most watched economic indicator. It is calculated then released by the Bureau of Labor Statistics, which is part of the Department of Labor.
What does Consumer Price Index measure?
It measures the change in price of goods and services purchased by the consumers excluding investment items such as stocks, bonds, real estates and life insurances. In short, Consumer Price Index measures the cost of living.
Why do we (traders) care
Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation. If the stats are good, they are considered as good for Australian Dollar which is likely to strengthen as a result and weakens when the stats are less than expected. Below is the Consumer Price Index for Australia. The stats are released quarterly. The first one was on the 29th of January and there’s 3 more left for 2019. Below is the annual schedule for Australia Consumer Price Index (CPI)
by Ntombi Malatsi | Jan 27, 2019 | ECONOMIC NEWS
Economic News To Watch This Week
by Ntombi Malatsi | Jan 27, 2019 | ECONOMIC NEWS
What Is FOMC?
The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System (the Fed).Its mandate is to oversee the nation’s open market operations (i.e., the Fed’s buying and selling of United States Treasury securities). This Federal Reserve committee makes key decisions about Interest Rates and the growth of the United States money supply. You may also like to read this post about why do Central Banks hike or cut their Interest Rates Here.
The Federal Open Market Committee (FOMC) consists of twelve members, the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents who serve one year term. The Federal Reserve said their farewell to Janet Yellen who was the 15th Chairwoman of the Federal Reserve from the 3rd of February 2014 – the 3rd of February 2018. Her last meeting was on the 31st of January 2018. The newly appointed Fed Chair, Jerome Powell was sworn in on Monday the 5th of February and he hiked the Interest Rates in his March 2018 meeting and went on to hike 3 more times in 2018. President Donald Trump is not impressed with the pace at which the Fed Chair is hiking the Interest Rates.
How To Subscribe To This Blog:
- Enter your email address from the sidebar where it says “SUBSCRIBE TO MY BLOG” and click “SUBSCRIBE”
- Go to your email to look for a confirmation email (check on your spam folder if you do not find it on inbox)
- Click on that link from email to confirm your subscription and you should start to receive my weekly economic news and weekly blog posts.
To open your Live Account with one of the legit and FSB regulated brokers, choose from these brokers HERE. For further assistance, email me at ntombimalatsi@learnfxtrading.net or WhatsApp me on +27 64 510 4132 / +27 76 966 9392 for instant chat. For private lessons, you can email, WhatsApp or enroll HERE. The first FOMC meeting of 2019 is on the 30th of January 2019. Below is the annual schedule FOMC. Thank you for stopping by and kindly share this post.
by Ntombi Malatsi | Jan 20, 2019 | ECONOMIC NEWS
Economic news to watch this week
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