Bank of England (BOE) Slashes Interest Rates Down To 2% Thursday, Dec 4 2008 

Forex and Recession Woes , , Omar 3:50 pm

Today, unexpectedly the Bank of England slashed interest rates down to 2%. This is the 1% drop after the recent drop of 1.5% amidst fears of recession. The interest rates are now down to 57 YEAR LOW. United Kingdom (UK) which was in no sign of recession had officially announced that they were in recession and the confidence in the Pound Sterling (£) has completely collapsed. The following chart shows the trends in interest rates over the past few years.

boe-base-rate

The interest rate cut has also served in weakening the Pound and the chart shows the intra day trading value of the Pound Sterling (£).

intra-day-usd-gbp

 

The US Economy In Recession Wednesday, Dec 3 2008 

Recession Woes , Omar 6:19 am

The US economy is finally in recession. God, how long did it take them to say or should I say confess to the International Community abot this problem. Till a few weeks back they weren’t in recession but now the media is talking about something completely different. They have been in recession since December 2007 according to National Bureau of Economic Research (NBER). Lets see what other things are they hiding from the public as events unfold and real image of the world’s largest economy is on display.

Source: Business Standard