Interest rates in global markets and downloadable PDF ebook

Forex Market Commentary  

At the heart of our analysis of the FX markets and the 4 main pillars of study - The USD, by virtue of being the 'international' currency of global

choice, the 'Euro' being the second most trade-able currency, crude oil as a barometer of economic activity and gold as an economic store of value, how central banks determine their interest rates becomes a paramount branch of study in itself. the cost of credit is the lifeblood to any business and equities markets tend to reflect the corporate pulse on accessing credit, engaging factors of input and producing goods and services which can be measured on an annual basis through the Gross Domestic Product and the overall Gross National Product inclusive of capital outflows and inflows.

Once again sweeping over market data as per Friday 14th August 2015 in the fixed income markets we have the following current base interest rates in select economies to note: 

Fixed Income Markets:

US - 30 DAY FED FUND    99.755   Down 0.005    -0.01%
ECB Base rate 0.050 %
Chinese interest rate PBC     China     4.850 %
Japanese interest rate (BoJ)    0.10 %

Now at BookBoon.com you can find the following illustrative ebook on how interest rates work in an international economy. with the 4 important economies of USA, Europe and Asia - China and Japan being all at various stages of the interest rate cycle the following book provides important background learning on the concept of interest rates.


Now at BookBoon.com you can find the following illustrative ebook on how interest rates work in an international economy:

Interest Rates: An Introduction
Prof. Dr AP Faure Rhodes University

Description:

The interest rate is the chief target of monetary policy, and central banks have the ability to control short-term interest rates to the extent of almost 100%. Longer-term interest rates are anchored in short-term rates. The principal interest rate targeted is the banks’ prime lending rate (PR) (which is a benchmark rate, ie all bank lending rates are referenced on PR). Why? Because new bank lending is the counterpart of money creation, and bank lending / money creation is a reflection of nominal GDP growth (government, companies and individuals borrow to undertake additional expenditure / investment). The purpose on monetary policy is to influence, via PR, the borrowers’ borrowing behaviour – the demand for credit. How do central banks control PR? They do so by setting their own lending rate to the banks, the policy interest rate (PIR), and by forcing the banks to borrow from the central bank at the PIR – or threatening to force the banks to borrow from it at the PIR. The PIR heavily influences market interest rates and ultimately the PR, and therefore the demand for credit.

Please sign up and download here for free:

http://bookboon.com/en/interest-rates-an-introduction-ebook


Thankyou

Pieter Bergli - DeLoren Trust Holdings

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