new rescue package for Brazilian Real

new rescue package for Brazilian Real

Economists are expecting the US federal bank to extend and expand its bond buying programme known as operation Twist. 0 billion is the expected sum to be implemented in an attempt to spur growth and offer better protection against a deeper crisis in the Eurozone.

The decision is expected to be officially announced after the ending of the Federal open market committee’s two day meeting which concludes today.

“Extending Operation Twist is the path of least resistance,” said Josh Feinman, the New York-based global chief economist for DB Advisors, “It would be an extension of something we have in place, so it would be more seamless, and it doesn’t complicate exit strategies as much because it’s not expanding the balance sheet.”

As investors wait for the result of the fed’s meeting all eyes have turned to the Bank of England’s June meeting. Speculation is rife that the BoE will implement further monetary easing measures. Currently the pound was holding steady against the greenback despite the release of lower than expected inflation in the UK economy. The U.K. Office for National Statistics revealed that consumer price inflation fell to 2.8% year-over-year from 3.0% in April, against expectations for an unchanged reading. The pair is trading in the region of 1.571.

The Euro is currently holding steady after a press release from the G20 meeting in Mexico said that a new rescue package was being discussed for Italy and Spain. Head of the international monetary fund Chrisitne Lagarde said:

“We all are concerned about Europe, particularly the euro zone. In Los Cabos the seeds of a pan-European recovery plan were planted. This must be recognised. European leaders committed to take all measures necessary to safeguard the integrity and stability of the euro area and break the feedback loop between sovereigns and banks. Their intention to consider concrete steps towards a more integrated financial architecture is important, and I look forward to discussing this further when I visit Europe this week to finalize the IMF’s annual review of the euro area.”

Currently the Euro is trading in the region of 1.267 against the Dollar.

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