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Markets.com chief economist Bill Hubbard breaks down the Bank of England’s decision to keep interest rates at 0.5%.
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-- signed check of the markets now -- here in the US futures have been in the green across the board all morning though not by huge amounts.
Dow futures are up nine -- S -- -- up to the NASDAQ up almost three in Europe Spain sold more than four billion euros worth of bonds this morning -- -- higher yields.
Than in previous options and we are also waiting to interest rate decisions.
From Europe this morning the Bank of England any minute now is expected to announce its rate decision and that expectation is for -- remain unchanged at half of 1%.
The European Central Bank is also expected to keep rates at a record low of point 75%.
And we do have that Bank of England decision and now they did in fact told their rates.
Kept them at half of 1%.
Let's go over to bill who barred now who's talking to us from London he has some reaction to that decision bill not a huge surprise -- -- think it's.
Well it's actually almost meeting that's fine because the key thing we were looking at this morning at 930 -- time.
Mark Carney -- the bank of being the designated government was speaking before the -- select committee and basically this is just a rubber stamp in the key thing he was saying again this morning as -- sort of hinted that it stop losses.
We need to change the economic scenario here in basically for the last seven years.
The banks -- he has been.
Not an inflationary today -- it to you 2% inflation target.
He's basically sort of saying in my words it's rather meaningless -- do other things.
To get the market started in reference to eliminating austerity except -- -- seen this now with the -- above 6300.
We -- Very strong move in sterling above 157 and that's really what the market was looking at tonight what mr.
Carney says he is going to do it also the market out.
This capping that real probability we will see no more quantitative easing from the back.
And -- the ECB is also out with its decision today it's expected also to keep its rate where it is but.
Part of -- is also expected to face a grilling over the European Central -- sensitivity.
To the euro's sharp rise and his connection to this Italian banking scandal how do you expect that meeting to play out.
Well as she just said forget what they did say -- reference interest rates that won't change -- annual.
Probably get a very severe grilling maybe not so much about them.
Flight problems with what's happening with the government -- in Spain and Italy but really we seeing sort of a split in the eurozone about the strength.
Or the week yes.
Of the Euro and one of the things a look at is on an implied basis the Euro at 137.
Is already imply an -- -- basis points of tightening.
This is something that may be okay.
With Germany fronts but he's not okay for the rest of the -- is -- so this is really going to be it's going to be a very tricky is almost like the ice and snow that you guys are gonna have this is what is gonna have to do is this -- the other is.
How are you gonna continue to just the fact that rates which I feel we should have at least one more rate cut by the European central back in the second quarter.
All right bill moved Friday -- with his recommendations we'll see if they'll listen bill thanks so much.
