US won't follow Australian rate rise

Font size :

By Robert Carry

The US Federal Reserve will not raise interest rates this week as the country's economic recovery is yet to gather pace, AMP Capital has predicted.

According to Dr Shane Oliver, head of investment strategy and chief economist at AMP, the US Federal Reserve will most likely leave interest rates on hold near zero when it meets next week.

However, Oliver believes comments emerging from the group will be closely watched. "The big focus will be on whether it softens its assessment that monetary policy can remain exceptionally easy for an 'extended period'," he said.

Oliver continued, "While there has been some talk that the Fed will signal a less dovish stance, our assessment is that it won't given the uncertainty about the strength of the US recovery and the amount of slack in the US economy."

Both the European Central Bank and the Bank of England meanwhile, are also expected to leave interest rates on hold following their interest rate setting meetings.

The US is also bracing for the release of a range of data studies, which will indicate the rate of economic recovery through home sales, the ISM and payrolls. The AMP expects US job losses to slow to 150,000 in October, but predicts unemployment will still top 10%.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Monday, Sep 25, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords