7 Jul 2015
Central banks on Greece - Rabobank
FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that the uncertainties regarding a potential Grexit and the associated question marks over the coherence of EMU undoubtedly has the potential to slow investment and growth in the Eurozone and its trading partners.
Key Quotes:
"Last week the Riksbank cited Greek risks as a factor in its decision to cut interest rates. Yesterday BoE Governor Carney met with the UK PM and Chancellor to discuss Greece. Despite hawkish comments from MPC member Weale last month, we continue to see steady rates from the BoE until May 2016 with Greek concerns another headwind to UK growth."
"Similarly we would argue that our forecast that the Fed will choose December over September to hike interest rates has been strengthened by the events of recent weeks."
Key Quotes:
"Last week the Riksbank cited Greek risks as a factor in its decision to cut interest rates. Yesterday BoE Governor Carney met with the UK PM and Chancellor to discuss Greece. Despite hawkish comments from MPC member Weale last month, we continue to see steady rates from the BoE until May 2016 with Greek concerns another headwind to UK growth."
"Similarly we would argue that our forecast that the Fed will choose December over September to hike interest rates has been strengthened by the events of recent weeks."