FED cut Interest Rate to 3.00% on 30th January 2008

Posted on January 31, 2008
Filed Under Forex News |

On Wednesday, as forecasted by many financial analysts, US Federal Reserve made its second deepest interest-rate cut by 50 basis points. Within a short span of less than 2 weeks, FED has lowered its overnight bank lending rate to 3.0%. Just 4 months ago, the rate was 5.25%.

The FED believed that the rate cut was necessary with the tightening of the credit market, battered housing market, volatile financial market and weakness in the job market. It also hinted that it will continue to lower interest rate if the economy continues to show more sign of weakness.

After the FED decision was made, the greenback fell against the Euro and the Yen. Wall Street analysts already are betting on more rate cuts in the next few months. If the US interest rate is going lower, it’ll definitely continue its slide against major currencies. With this interest rate cut, the US interest rate of 3.0% is only slightly than Swiss Franc 2.75 %( CHF) and the Japanese Yen 0.50%. As of now, the interest rate of major currencies is as follows:

Japanese Yen (JPY) - 0.50%
Swiss Franc (CHF) - 2.75%
US Dollar (USD) - 3.00%
Euro Dollar (EUR) - 4.00%
Canadian Dollar (CAD) - 4.00%
Sterling Pound (GBP) - 5.50%
Australian Dollar (AUD) - 6.75%
New Zealand Dollar (NZD) - 8.25%

As we wait for the FED next schedule meeting on March 18, let turbo charge our mental state with this great money visualization video……

Cheers, Kampai, Proscht^^!!

Comments

2 Responses to “FED cut Interest Rate to 3.00% on 30th January 2008”

  1. Thx on January 31st, 2008 5:27 pm

    Luckily Fed lowered the interest rate by 50 bp otherwise the stock market will crash.

  2. g-lato on February 1st, 2008 6:45 pm

    Hey Forex! Nice blog you got here. Good post on the rate cuts, very informative!

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