Al Jazeera English
WEDNESDAY, APRIL 30, 2008
21:13 MECCA TIME, 18:13 GMT
The US central bank has cut interest rates by a quarter-point from 2.25 per cent to two per cent.
The cut, which had been expected to take place, is the seventh reduction since the Federal Reserve began cutting rates down from 5.25 per cent last September, in response to growing fears of an economic slowdown.
It also means that the federal rate is now at its lowest since December 2004.
The cut comes as figures released on Wednesday showed that the US economy had managed a modest growth rate of 0.6 per cent in the first financial quarter of 2008, slightly topping analysts’ expectations.
Oil in 2012: $200 or $50?
By Martin Hutchinson
Apr 30, 2008
CIBC World Markets analysts recently predicted that oil would sell for US$200 a barrel in 2012, as oil supplies grow ever tighter relative to demand. That would imply a continued global boom for the next four years, which would bring inflation, perhaps validating CIBC’s prophesy as the dollar went the way of the 1923 Reichsmark.
All the same, that’s not the way I’d bet; I think $50 is more likely. We are probably not quite at the end of this unprecedented oil and commodities bubble, but we are surely getting close.
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