SECOND RATE INCREASE IN TEN YEARS

SECOND RATE INCREASE IN TEN YEARS

January 2017 ​ Just over a year ago, the US Federal Reserve ended a zero interest rate policy which lasted seven years. Last month, the Federal Reserve made its second interest rate increase in 10 years (from ¼% to ½%). This one year interim between rate increases was...
FOUR MAJOR CENTRAL BANKS STILL PRINTING MONEY

FOUR MAJOR CENTRAL BANKS STILL PRINTING MONEY

October 2015 Major central banks, like the US Federal Reserve, can print money and lower interest rates in order to stimulate their economies; this is referred to as easy monetary policy. Sometimes this also leads to a lower currency valuation which can boost exports....
MONETARY POLICY – NEGATIVE INTEREST RATES

MONETARY POLICY – NEGATIVE INTEREST RATES

July 2016   Government central banks, like the US Federal Reserve, control short “overnight” interest rates and the printing of money. In order to stimulate an economy, a central bank may loosen monetary policy (i.e. lower interest rates and print money) in order...
EU AND JAPAN PRINT MONEY WEAKENING EURO AND YEN

EU AND JAPAN PRINT MONEY WEAKENING EURO AND YEN

April 2015 ​ ​ Central banks are attempting to accelerate their countries’ economic growth rates by lowering interest rates and expanding money supply (printing money or easing bank restrictions). In the last quarter, China, India and Russia lowered interest rates....
EXTREME MONETARY POLICY & OIL PRICE SHOCK

EXTREME MONETARY POLICY & OIL PRICE SHOCK

January 2015 ​ ​ Central banks try to control monetary policy with the printing of money and movement of short-term interest rates. Switzerland recently joined Japan and the European Union (EU) in creating negative interest rates. In these regions, banks now charge...