US bank reforms a test to local market
By Tim Neary
|
25 Jan 2010
Uncertainty about the Obama bank reform agenda is set to stir up the Australian share market this week, but may offer homeowners the silver lining of delaying interest rate rises.
President Obama's plans to overhaul the size and scope of US banks is expected to contribute to falls tipped by analysts and futures markets, reported BusinessDay.
Shane Oliver, chief economist at AMP Capital Investors said market turmoil would be the only thing to stave off a fourth consecutive rate rise next week.
He expected a rough ride on markets this week, but saw that as a correction rather than the start of a new bear market.
"If the market volatility continues up until the Reserve Bank's board meeting next week then borrowers may be saved another slug on interest rates," Oliver said.
On Friday US stocks ended their worst week since October.
Related Story
Interest rate hike rumours heighten - Only one week to go before the Reserve Bank of Australia meets again to discuss the prospect of raising rates for a fourth time in a row and economists are tipping an increase is likely.
Broker news forum is the place for positive industry interaction
and welcomes your professional and informed opinion.
You must login with your Broker news username and password to leave a comment. If you are not already a member, sign up now!
Post a comment
Broker news welcomes your contribution. Your IP address is recorded in the event
of a complaint.