Central bank rates – Cutting as much as possible, and then what?

US Federal Reserve Bank: Now Fed is at 0,50% and it’s difficult to go much lower. They claim to have other methods to help the market (or you could read force the market) to get moving. Though it is not very healthy – creating a new credit bubble.

Bank of England: They will drive it as low as possible – another 50 basis points to 1,50% last week. The 315 year low….. 

European Central Bank: Very quickly taken down to 2,50% so now Mr. Weber needs some time to digest. Further cuts are already priced in and also likely, but slowly towards 1,50% or 1,75% during the spring. The next step to 2,00% is on Thursday 15^th Jan.

Bank of Japan: 0,10% – that was it.

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