Morning update – 17/03/16 by Michela Jaccarini
March 17, 2016Good morning!
Yesterday the FED left interest rates unchanged at 0.5%. All further interest rate hikes have been put on hold for the time being after fears of a slowdown in China and falling oil prices affected investors. The global economic situation continues to pose risks which results in inflation expected to remain low for a while.
During yesterday’s meeting, FED Chair Janet Yellen stipulated that the FED’s policy is not planned out for months to come and that what it proposes are not promises. Global situations and circumstances affect the pathway it takes and decisions it makes, however she has not ruled out the possibility of an April rate hike.
Yellen struck a cautious tone during the press conference, using words such as “prudent”, “gradual” and “carefully monitor”. Back in December it was expected that there would be 4 rate hikes in 2016 however these expectations have now been lowered to 2 rate hikes for 2016.
