Home > Euro > A Greek departure from eurozone = Developed world action.

A Greek departure from eurozone = Developed world action.

Here are some interesting thoughts from the ASB bank with regard to the eurozone crisis situation. Predicted market outcomes as participants become concerned over potential contagion:

* The USD is likely to strengthen further.
* European Central Bank to cut interest rates 50 basis points to 0.50%.
* Bank of England to undertake further Quantitative Easing.
* Federal Reserve to undertake a third round of Quantitative Easing.
* Reserve Bank of Australia cuts rates 100 basis points to 2.75%.
* Reserve Bank of New Zealand cuts rates by up to 50bp to 2%,

Also look at the graphs below especially the one showing the withdrawal of money from trading banks.

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Categories: Euro Tags: ,
  1. Simon
    May 27, 2012 at 10:57 pm

    It’s amazing that Spain is seeing inflows. There is not much talk about Ireland leaving the EU yet.

  2. May 28, 2012 at 9:31 pm

    Yes interesting points. Ireland has been performing well considering the economic climate but one wonders about the withdrawals. Would these be the Irish leaving the country?

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