Prices on the stock exchanges and currency markets are becoming increasingly erratic, culminating in the mini-stock market crash on the financial markets at the beginning of August. Although the economic headwind seems to be strengthening, Joost Derks, currency expert at iBanFirst, does not expect the European Central Bank (ECB) to lower interest rates any time soon.
Derks thus contradicts a group of economists who expect the ECB to lower interest rates relatively quickly to stimulate the economy. “But what should a lower interest rate encourage?” Derks asks. On the other hand, interest rate cuts can be expected in other countries, Derks indicates. Naturally, developments in the currency markets of euro/dollar, euro/pound and the dollar against the Japanese yen will also be discussed.
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