Wednesday 29 January 2014

When will interest rates rise?

Please refer to yesterday's blog. This forms part of the series on The Edge 1,000th issue special report on The State of the nation.

On one hand, the US Federal Reserves is tapering its quantitative easing (QE), resulting in reduced liquidity.  On the other hand, they are holding short term interest rates low. This has resulted in the steepening of the yield curve.

What will happen? When will US short term rates go up?  And what will happen to the interest rates and exchange rates of the Emerging Countries, including Malaysia, as a result of this? 

1 comment:

  1. QE, can't go on forever - it will have to end sooner or later. What will happen after that? Well, things would probably go back to waht it was before - status quo!