Majot Market Mover

BoJ, BoE, and ECB…

As the European central bank took the first step to heat the markets up yesterday, as they injected 500 billion euros into the financial system to provide more liquidity, the BoJ are starting their policy meeting to decide on interest rate, while the BoE are about to release the minutes of the last meeting.
As the bank of Japan are facing a lot of pressure to go for higher rates world wide, they are still having enough troubles in their homeland that prevents the world's second largest economy to go higher than 0.5% benchmark rate. The decision will be announced at the end of the Japanese session tomorrow.

While the bank of England decided lately to cut their rate a 25 basis points reaching to 5.50%, still the highest amongst major world economies, yet investors are analysts are waiting to understand what was really behind that decision??! What are the main reasons behind it??! Does the MPC see that high interest rate might lead the UK housing market to its lowest as it did in the United States??!!

Expectations that the MPC voted to cut rates as in 6 to 3, the three were actually voting to keep rates steady supposedly, seeing the need to lower rates in the United Kingdom, yet sees no need to rush into anything that might stimulate inflation all over again.

Its not easy for central banks nowadays to make decisions about the cost of borrowing, with the recent credit crunch, no one see himself beyond the strike, they all feel the heat coming from the outside, and they are trying to keep it steady from the inside, and investors have no mercy when it comes to their return on investment and the risks threatening their possessions.

Those are the main highlights for today dear reader, those will be the major market movers, till the U.S. GDP growth report hits market with its glory.