BNP Paribas: diversified model damps rates boost
Rising interest rates are fattening bank profits. After better than expected third-quarter results on Thursday, BNP Paribas finance director Lars Machenil extolled their benefits. It is a pity France’s largest lender has less to offer here than some peers.
The first problem is the slow pace of rate rises from the less hawkish European Central Bank. Last week it raised its benchmark rate by three quarters of a point to 1.5 per cent. That compares with the Fed increasing to 3.75-4 per cent on Wednesday and the Bank of England going up to 3 per cent on Thursday.
The euro is down some 16 per cent versus the dollar in a year and inflation rose in double digits in October. The ECB’s action therefore seems halfhearted
This story originally appeared on: Financial Times - Author:Tax Cognition
