With Black Monday’s upset in the markets being the focus point of financial news this week, Market reporter – Michael Hunter – joined Nick Batsford and Zak Mir in the Tip TV studio to discuss the implications this has had on an interest rate hike in the US.
Nobody wants to be the Grinch who raised rates at Christmas
Despite having taken a huge leap away from the woes of 2008, global recovery has remained slow. This has been hindered by the markets, which have a tendency to panic whenever an interest rate hike seems imminent. This raises the question as to whether the Federal Reserve will have to endure the consequences and raise rates knowing that another small market crash will also occur.
Does the PBoC have any idea what they’re doing?
The world is currently relying on the People’s Bank of China to limit the damage from its bursting equity bubble, and to prevent any of the major Chinese banks collapsing. Even though the official growth figures remain suspect, Michael Hunter believes growth still remains strong in the country, and China is unlikely to cause any serious damage.