Since interest rate policy this year caught analysts off guard more than once, one cannot help wondering what surprises are in store for the market, which confidently expects a 50 basis point rate hike on Thursday. Analysts nevertheless point out that anything other than a rate rise of this magnitude could spell disaster.
I expect a 50bp rate hike, but after every single rate hike we always get analysts predicting "disaster!" if the rates go up again. And yet consumer spending is still higher than expected.
3 comments:
Tito likes surprises plus he has been repeatedly warning people to curb their spending ... but they are blindly ignoring him - maybe he might just go for a little shock therapy and go all the way with 100bp
Nice blog!
I have pinned it here for you:
http://forum.globalhousepricecrash.com/index.php?showforum=12
Tito says he seriously considered 100bp - I think he knows it would have been a better option but he didn't want to be the Grinch that ruined Christmas
Post a Comment