Interest the US omlaag with 0.25 per cent
Spent: 25 June 2003 20.23 last modified: 25
June 2003 20.45 WASHINGTON - the United States their interest has
reduced Wednesday. The most important interest tariff, the
federal funds rate, goes with 0.25 per cent omlaag up to 1 per cent.
With that the interest has come at the lowest level since 1958.
it has been the first time this year that the Federal Reserve board
(Fed), the governing board of the twelve central banks in the United
States, this year modifies the interest. The previous
modification took place in November previous year, then the interest
cog was reduced with 0.5 percent point. That was the only
interest lowering of that year. In 2001, the central banks
reduced the interest no less than eleven times. Everywhere had
been already taken into account that the central banks would screw the
interest omlaag. It was only the question if that would be with
0.25 or with 0.5 percent point. The share prices on the grant of
New York showed nearly no response to the interest decision. The
dollar reacted with a small offset. With the lower interest the
monetary authorities want give a move in the good direction to the
economy. The previous lowerings have not had the desired impact,
the result being that the central banks further omlaag obtained the
tariff. At the previous modifications there was talk still no of
deflation, a risk that now, however, threatens the economy.
Deflation, a constant fall of the prices, keeps the danger in
that the consumer is money on pocket keeps awaiting a further fall.
Correctly of the consumer spendings the American economy must it
has. A lower interest tariff can incite the consumer more money
to lend to be able pay for its purchases. For businesses it is
more attractively lent with money investments to finance. More
expenditure can obtain the economy from the slop. Correctly
Wednesday was confessed that the producers of durable goods in May for
the second month achtereen have got in less orders. The
reduction amounts to 0.3 per cent, whereas an increase of 1 per cent
had been expected. In April the reverse gear 2.4 amounted to
percent. On the other hand by the low mortgage interest sale of
new houses in May has increased the strongest since September 1993rd
(c) DUTCH PRESS AGENCY
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