Interest rate cuts expected before year end

November 3. The current interest rates.
This week the ECB and the Bank of England could cut rates. We expect each of them to cut rates by 50 basis points, ½%, it's a more or less symbolic gesture. It depends very much on the graveness of current economic citcumstances or how central bankers judge the situation, when they do a 1% or more rate cut it means trouble ahead.
FED's chairman Bernanke last week already said, he does not expect very much of further rate cuts, and he has to reckon with the new Obama team. If the economic and financial situation deteriorates further between now and the 16th of December we can expect an other 25 basis points cut from the FED.

Download PDF Beige Book December 3 (Summary of Commentary on Current Economic Conditions by Federal Reserve District)