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 …
Economic data show a turning point has been reached in the cycle
With inflation falling sharply in the US, the eurozone, and the UK, there is no longer a debate about whether the peak in interest rates has been reached. Instead, there is a consensus about rate cuts being the next move, not rate rises and about when that will happen, not if. Financial markets are now …
Continue reading “Economic data show a turning point has been reached in the cycle”