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Risk of Interest Rate Rise Falls as China Devalues

August 24, 2015

With falling unemployment in some countries and the need to wean the market off historically low interest rates, there has been mounting pressure for an increase but with the devaluation of th Yuan by China there will be a reluctance to further strengthen exchange rates. The lesser need to increase interest rates is further impacted by the fall in the price of fuel which should continue to constrain inflation. With low interest rates and ever stronger competition among lessors, rates are expected to remain low.

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