In recent months, official interest rates have been cut worldwide as inflation has fallen sharply from the peak of over 9% following the end of the Pandemic and Russia’s invasion of Ukraine, which drove up global food and energy prices, see chart 1. Global price inflation has fallen to the rates before the Pandemic and …
This week, the Bank of England’s decision should be a no-brainer – just not in the way the market thinks
Financial markets are betting this week that the Bank of England will not cut its key interest rates but leave them on hold at 4.75%. The market consensus from Trading Economics is that the 9-strong committee on Thursday, the 19th, will vote 8:1 to leave the UK Bank rate at 4.75%. That is despite annual …
A tale of two interest rate decisions
The US Federal Reserve or Fed, and the UK Central Bank or the Monetary Policy Committee (MPC,) both made the decision on whether to cut interest rates on the same day, although, given the time difference, it happened at different points. The US Fed cut interest rates by ½% to a range of 4.75% to …