monavateme.com: The I's have it. World Central Banks start cranking it up!

The I's have it. World Central Banks start cranking it up!

The I's, meaning the two countries that start with an I have recently raised ratesIsrael raised interest rates in late 2009 and this week India followed suit with an increase in rates.  It isn't just countries that start with the letter I that raised rates in the last few months but this move this week is the one that hit my radar screen the most.  In addition to Israel and Norway raising rates at the end of 2009.  Malaysia and Australia raised rates earlier this month.

The move by India's central bank now makes 5 central banks raising rates.  The Reserve Bank of India said that this is the first of what may be multiple moves to make sure inflation doesn't get out of control from all the cheap money the last 2 years.  Stocks in India didn't respond well with this move.  With the Fed raising the discount rate but not the fed funds earlier this year, they half stepped it as our economy still remains soft.

The effect on mortgage rates seems muted so far but other moves but other central banks are worth watching in the coming months.

 

Michael

Michael Cantwell

Loan Consultant - Boca Raton, Florida

My website - www.loanDepot.com/mcantwell

My Mobile # 561-262-5366

My Outside Blog Florida Renovation Loans

 

 

 

               

Comment balloon 2 commentsMichael Cantwell • March 21 2010 10:37AM

Comments

Thanks Michael for the interesting post. We will have to see how this plays out.

Posted by Melissa Juarez (Massachusetts Buyers Broker Agency, LLC) over 8 years ago

Your welcome Melissa.  Thanks for stopping by.  I think the ultra low rates may be ending sometime this year.

 

Michael

Posted by Michael Cantwell (Envoy Mortgage - NMLSR ID #644428) over 8 years ago

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