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STRENGTH OF THE DOLLAR A climb in the dollar against the euro for the remainder of this year would suggest that the Fed was nearly done trimming interest rates and that the economy was truly on the mend.
HONG KONG — The South Korean central bank surprised analysts on Thursday by trimming interest rates by a quarter of a percentage point — the latest central bank to cut rates in the face of tepid growth.
Jean-Claude Trichet — Heads of state will try to bully the well-regarded European Central Bank chief into trimming interest rates to soften the euro against the dollar.
It must check wholesale prices, up 6.9% in March from a year earlier, while still trimming interest rates to keep the economy from slipping off a cliff.
Archer said that the central bank would be wary of trimming interest rates in the face of high oil prices, food inflation and "excessively buoyant" money-supply growth.
If the economy is powering ahead without much impact from the slowdown in Asia, the Fed may think twice about trimming interest rates further in the first quarter of next year.
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The central bank has trimmed interest rates, but only cautiously.
In the first seven months of the year, the central bank trimmed interest rates and banks' reserve requirements.
The ECB could trim interest rates and EU governments could give their economies a fiscal boost: both would stimulate employment.
"It currently seems highly unlikely that the Bank of England will be prepared to trim interest rates from 5.00%to4.75%5% until August at the very earliest," Archer said.
Indeed, it is very possible that the ECB could trim interest rates to 0.50% as soon as its May policy meeting.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com