Steady interest rates forecast for Tuesday

Bangkok News.Net
Monday 4th August, 2008

Interest rates should remain steady after the US Federal Reserve meets on Tuesday.

Bank members are expected to agree that financial conditions remain strained, despite a recent pullback in energy prices.

Economists say the central bank is also likely announce that the next rate move will be upward, due to creeping inflation.

While a number of Fed officials have argued about the danger of holding rates too low for too long, recent data have supported a patient monetary policy approach, with falling employment and subdued second-quarter growth underscoring the fragile state of the economy.

Have your say on this story