Wednesday, July 4, 2012

Economic update _4th July 2012

Equity market Globally is going up again expecting Monetary easing by Global central Bank thus infusing liquidity . In India Equity market is at last two Months high . It is expected the market will go up and SENSEX may cross 20000 mark by Diwali this year . Indian Government has recently hiked the FII ceilling of investment in Government Bond . FII are  bringing more and more  Money for investment in Debt instruments . Reserve Bank of Australia has  kept its cash rate unchanged at 3.5% but kept the option open for monetary easing  . But  25bps cut is expected in aug/ sept . Globally each cental Bank using the interest rate tool for Monetary easing .  ECB is also  expected to cut rate to historical low at 0.75 from the present level of 1.00% . ECB may also cut the 0.25% deposit rate to deter Bank to park Money with ECB rather using it for interbank requirement . deposit rate may be moved to Zero . BOE is  expected to start QE to support the Economy .

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