Money markets suggest first base rate hike now looms a year sooner

A key interest rate curve now puts a rise from the current record low level of 0.5% in summer 2015, this shift forward has arrived as investors fear quantitative easing bond buying schemes will be eased back in the US and UK, the Daily Mail reports. Hints on the this from the US Federal Reserve have sent stock markets into a tailspin. Improved signs of life in the UK economy and niggling inflation, which rose to a higher than expected 2.7% in May, have added to the suggestion that ultra-loose monetary policy may be tightened sooner rather than later. Money markets have also seen th...