What the Pros Say: Rates Need to Come Down
Global markets tumbled severely on Friday as fears of a global economic slowdown reached a crescendo.
Sterling plunged to new lows against the dollar, in the region of $1.55, after data revealed that Britain's economy contracted more than expected in the third quarter. In the midst of recession worries, CNBC's experts call for further rate cuts.
Euro Interest Rates May Be Cut
Interest rates may have to come down further in Europe as we could be facing an L-shaped recession whose length is difficult to predict, Ewald Nowotny, Austrian Central Bank Governor and European Central Bank policy maker told CNBC.
UK Rates at 2% Next Year
The UK economy shrank more than expected in the third quarter, its first contraction since the second quarter of 1992. Sarah Hewin, senior economist at Standard Chartered told CNBC she expects the Monetary Policy Committee to cut rates by 50 basis points in the November meeting and another 50 basis points in the December meeting.
Hewin expects UK interest rates to be down to 2 percent next year.
RBI May Cut Repo Rate Again
The Reserve Bank of India may ease its repo rate and cash reserve rate by another 50 basis points, says Vishnu Varathan, regional economist at Forecast. He also sees more scope for cuts thereafter.
US Stocks May Hit New Lows
The U.S. markets could hit new lows before the end of the year, believes Howard Lutnick, chairman & CEO at Cantor Fitzgerald. He tells CNBC that what the financial markets really need is a floor under the U.S. housing prices.
Which Sectors Are Oversold?
The financial, energy and materials sectors are oversold, believes Mike O'Rourke, chief market strategist at BTIG.
HSI May Be Close to Bottom
According to Steve Tse, research manager at BEA Union Investment Management, the Hang Seng Index is very close to the bottom. He tells CNBC that 13,000 points is the bottom for the index.
Markets May Find Stability Soon
Within the next few weeks, the markets might be able to stop their losses and find stability at the bottom, says Enzio von Pfeil CEO of EconomicClock.com.
Aussie-Dollar May Hit Low of $0.59
The Aussie dollar will probably find a bottom in the first-quarter of 2009, says Richard Grace, chief currency strategist at the Commonwealth Bank of Australia. He tells CNBC that the Aussie-dollar could hit a low of $0.59.