Pressure increases for interest rate cuts in US and Europe

POOR global economic data has

In the US, the Federal Reserve’s Beige Book, published yesterday, makes it clear that the economy is still struggling. The Beige Book is published in advance of every meeting of the banks to decide on interest rates.

This is set for November 6, and several economists suggest that only for the US elections and the uncertainty about a war on Iraq, the Fed would almost certainly cut rates when it meets next week. Other factors, however, come into play when judging the direction of US interest rates.