Baku 22° C
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Baku. 18 June. REPORT.AZ/ At yesterday's regular meeting of the Federal Reserve System (Fed) decided to keep the interest rate at its lowest level in the range of 0-0.25%.
The Fed keeps rates at this level since December 2008, and the last time the rate was increased in 2006.
Report informs, at the meeting the forecast for US GDP growth for 2015 fell from 2.3-2.7% to 1.8-2.0% in 2016 - up from 2.3-2.7% to 2.4-2.7%.In the long term outlook for economic growth remained unchanged at the level of 2-2.3%.The forecast for unemployment in 2015 was increased from 5.0-5.2% to 5.2-5.3% in 2016 - remained at 4,9-5,15%.Inflation this year will be at the level of 0.6-0.8% in 2016 - in the range of 1.6-1.9%.
At the meeting there was a slight improvement in the labor market, a moderate rate of economic growth, the rapid employment growth.Against the background of these assessments Fed unanimously decided not to change interest rates.
The head of the Federal Reserve Janet Yellen said that based on the current state of the economy the discount rate will be increased gradually.She stressed that they would like to achieve more rapid economic growth, adding that inflation is expected to lower than expected level of 2% due to the fall in oil and export prices.
Investment Fund Barclays Capital, based on the forecasts of the members of the Federal Reserve, does not rule out raising interest twice this year.At the same time, it is expected to increase interest rates in September only once this year.
These news and the subsequent uncertainty weakened the position of the US dollar in the international currency market.The euro also strengthened to 1,1240 USD / EUR up to 1,1370 USD / EUR.Events also had an impact on the currency market of Azerbaijan, causing the fall of the dollar (1,0474 AZN / USD) and the strengthening of the euro (1,1900 AZN / EUR).
Analytical group of Report predicts a continuation of the trend to strengthen the euro and the weakening dollar in the global market:"By the end of year exchange rate will rise to the level of 1,22 USD / EUR.On the Azerbaijani market depreciation of the dollar to 1,0450 AZN and rise in price of euro to 1,28 AZN is forecasted ".
