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23.06.2008 - Economic Weekly Outlook

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Date: 2008-06-23 11:30

Investors were anxiously waiting for the upcoming week, especially for Wednesday’s decision of the Fed regarding interest rates. The market expects the American central bank to leave the federal funds rate unchanged at 2.00%. That would stop a series of interest rates decreases in the U.S. Inflation is a danger to the economy and it seems the Ben Bernanke finally noticed it. Also on Wednesday, the Polish Monetary Policy Council (MPC) will announce the new level of interest rates in Poland. Another decision than an interest rate hike by 25 basis points to 6.00% would be a big surprise.


Even though the market focuses on the Fed’s decision, other important macroeconomic reports will be published this week. On Tuesday, the Conference Board will publish its U.S Consumer Confidence index, which measures the mood of consumers in regard to economic conditions. This week will get more news from the U.S housing market. On Wednesday, the New Home Sales report will be published. The more important, Existing Home Sales publication, will be published on Thursday. Finally, investors will get good news since sale of homes is expected to increase by 1.4%. Is the housing market crisis over? Probably not yet, but the market will get any good news.

Other reports worth attention that will be published this week include the U.S durable goods orders (Wednesday), U.S Final GDP for the First Quarter (Thursday), and Friday’s revised University of Michigan Consumer Sentiment report.


Adam Narczewski