Financial Times FT.com

The Short View: Currencies and bonds

By John Authers, Investment Editor

Published: June 20 2007 17:26 | Last updated: June 20 2007 17:26

Long-term interest rates, the rates that matter, are set by markets and not by bankers. The bond and foreign exchange markets are crucial balancing systems for the world economy, as this month’s turmoil shows.

But central banks - even for quite small countries - can throw a spanner in the works. They just need to use stealth and take markets by surprise.

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