- CNTV English - CCTV News

Central banks likely to hold interest rates

07-07-2010 09:31 BJT Special Report:

With the exception of India, central banks around the world are keeping interest rates on hold. It seems none are willing to act too soon, in the midst of a complex and uncertain global economic recovery.

It's a complex economic situation.

And one of the biggest questions for central banks is what to do with interest rates.

Raising them tightens liquidity, and risks jeopardising economic growth. Leaving them unchanged or reducing them, can lead to higher inflation.

Most central banks are choosing to wait and see.

The U.S. Federal Reserve announced it was keeping interest rates at a historical low last month.

Europe's central bank is also keeping its interest rate at the lowest point.

Analysts suspect that with the EU tightening fiscal policies, and the US reporting lower-than-expected economic data, rate hikes there are unlikely before next year.

However, developing countries in Asia are looking to increase their interest rates. India's central bank announced it was raising its repurchase rate and reserve repurchase rate for the third time last Friday.

Asian countries like Thailand and South Korea are also expected to raise their rates in the near future.

Analysts say that's due to overheating in the their economies.

Editor:Xiong Qu |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program