Search

The article discusses the interest-rate policies of the Bank of England (BOE) and the European Central Bank (ECB). In February, 2009 the BOE is expected to reduce a key short-term interest rate to 1%, while the ECB will likely hold its analogous rate steady at 2%. However, some investors believe the ECB could cut that to 1% later in 2009.

The article discusses recent strength displayed by the U.S. dollar. As the U.S. economy has showed signs of faltering, the dollar has declined relative to other currencies. Expectations that the U.S. Federal Reserve will be finished cutting interest rates by the summer of 2008, however, coupled with fears that European interest rates could soon fall, have helped buoy the dollar.