Sep
16
No Economic Theory Dictates That Rates Will Rise Due to the End of QE2
“There is no economic theory which dictates that rates will rise due to the end of QE2, as one of its purposes is to create a positive wealth effect and anchored inflation,” said Steen Jakobsen, the chief economist at Saxo Bank. “However, recently we have seen inflation expectation has been increasing – if this continues the marginal cost will rise.”
Companies in the Middle East are heading to market in great numbers with bonds and sukuk, as they rush to take advantage of the end of stimulus measures in the US and the region’s political turmoil changes course.
Sukuk is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds.
Read full article at www.thenational.ae