Thursday, August 13, 2009

Global interest rates may rise sooner than expected


KUALA LUMPUR: Anecdotal evidence indicates that monetary authorities around the world are preparing to end ‘quantitative easing’ or the ‘open tap policy’ aimed at stimulating economic activities, says MIDF Research.
It said consensus expectation was that 2010 would be a year of interest rate hikes.
"The commencement of the interest rate ‘normalisation’ action would mark the beginning of a ‘price rationalisation’ phase in global equity, as issues pertaining to corporate earnings quality come to the fore,” its head of research Zulkifli Hamzah wrote in a report yesterday.
“This means that 2010 may be tough for equity, for the most part of it,” he said.

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