Today, the Bank of England kept rates on hold at 5.25%, with few changes to its statement. The decision was described as "finely balanced" for some policymakers, suggesting potential support for a rate cut in August. Read more: https://lnkd.in/eqXgwKsY The European Central Bank cut interest rates this month, the first in nearly five years and the second of the Group of 10 central banks, after Canada’s rate cuts the day before. The ECB lowered its main refinancing rate to 4.25% and the deposit rate to 3.75%. President Lagarde stated that if inflation continues to decline, there may be further rate cuts. #EuropeanCentralBank #BankofEngland #BoE #ECB #MonetaryPolicy #Inflation #InterestRates
Chatham Financial’s Post
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The Bank of England voted to keep rates on hold as expected at 5.25%, though one member of the Monetary Policy Committee voted for a rate cut and two members voted to hike rates. A subtle change in the accompanying statement suggested that the Bank may be moving to a more neutral stance. The European Central Bank also kept rates on hold as expected, at a record high of 4.00%. Although the Central Bank sounded confident that inflation remained on a downward trajectory, President Christine Lagarde said it was “premature to discuss rate cuts.” #bankofengland #europeancentralbank #interestrates #inflation
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📈 Weekly Market Report 27/09/23 📉 🇬🇧 GBP – Bank of England hold rates at 5.25%, to watch data 💷 Last week, the major surprise was that the Bank of England committee voted not to hike by 5-4. Governor Bailey was the casting vote and decided on no rate hike. This follows 14 consecutive rate hikes that started at the end of 2021… 🇪🇺 EUR – Riksbank and Norges Bank hike by 0.25% but Swiss hold rates 💶 It was a busy week last week for central banks, across Europe as well. As expected, Sweden’s Riksbank and Norges Bank both hiked rates by 0.25%. The Swiss National Bank surprised markets, before the Bank of England, in leaving interest rates unchanged at 1.75%… 🇺🇸 USD - Federal Reserve agree second hawkish hold on rates 💵 The Fed paused on rate hikes again, for the second time this year. Markets still believe that the Fed may have one more hike left to come in 2023, partially driven by the ‘dot plot’ of Fed members’ expectations… For full report and rates, click: https://bit.ly/453SYi9 #finance #business #currency #marketreport #businessperspectives
Bank of England surprise markets by holding rates; Fed pause
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📈 Weekly Market Report 27/09/23 📉 🇬🇧 GBP – Bank of England hold rates at 5.25%, to watch data 💷 Last week, the major surprise was that the Bank of England committee voted not to hike by 5-4. Governor Bailey was the casting vote and decided on no rate hike. This follows 14 consecutive rate hikes that started at the end of 2021… 🇪🇺 EUR – Riksbank and Norges Bank hike by 0.25% but Swiss hold rates 💶 It was a busy week last week for central banks, across Europe as well. As expected, Sweden’s Riksbank and Norges Bank both hiked rates by 0.25%. The Swiss National Bank surprised markets, before the Bank of England, in leaving interest rates unchanged at 1.75%… 🇺🇸 USD - Federal Reserve agree second hawkish hold on rates 💵 The Fed paused on rate hikes again, for the second time this year. Markets still believe that the Fed may have one more hike left to come in 2023, partially driven by the ‘dot plot’ of Fed members’ expectations… For full report and rates, click: https://bit.ly/453SYi9 #finance #business #currency #marketreport #businessperspectives
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This week, six G10 central banks are in action, with expectations of a 25bp rate hike by the Bank of England, taking the Bank Rate to 5.50%. Market interest lies in the Bank of England's statement, particularly phrases suggesting further tightening. UK inflation data and recent ECB statements are also crucial. If the Bank of England hints that the policy rate is sufficiently high, it could negatively impact the Pound. ING analysts are bearish on the Pound, expecting a larger 2024 easing cycle than currently priced. Anyone with upcoming exchanges should get in touch before this week's BoE. 📈 📉 📊 #boe #interestrates
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The UK’s inflation rate fell to 2.3% in April, the lowest level in almost three years, but how is the swap market pricing upcoming Bank of England interest rate cuts? Our own Angus McDiarmid says: “Markets have discounted the chance of a June rate cut off the back of a slower than expected fall in inflation as published earlier this morning. The June MPC swap rate has increased by ten basis points, reducing the probability of a rate cut at the next meeting.” Take a look at the projected policy rate path of the central bank from now until December. #ChartOfTheWeek #OnTradeweb
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With the upcoming Bank of England meeting this Thursday - the question remains for a 25bps or 50bps hike?🤔 Saxo's Althea Spinozzi explores the different scenarios and potential impacts that the different rate hikes could have on the UK economy. A 25bps hike might cause market uncertainty and volatility and a 50bps hike could align with other Central Banks but flatten the yield curve. Read the article here to find out what could happen and how the UK economy may be effected here 👉 https://lnkd.in/e5NxzH_S #bankofengland #ratehike #interestrates #inflation #beinvestedwithsaxo
Bank of England 25 or 50 basis points rate hike
home.saxo
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The Bank of England (BoE) has opted to keep its base rate at 5.25%, the fifth time in a row the central bank has held interest rates. While economic forecasters are still expecting interest rates to fall later this year, the current base rate, which was set last August, will remain at its highest level for nearly 16 years. #bankofengland #baserate #interestrates #inflation https://lnkd.in/ekaRScsn
Bank of England keeps base rate at 5.25%
moneyage.co.uk
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Interest rates held at 5.25% as Bank of England remains cautious 🚧 Our Head of Investment Analysis, Laith Khalaf, reacts to this news and explains the role inflation has in the decision to hold rates for a fifth consecutive month: “It seems pretty clear the Bank is deciding when, not if, it should cut interest rates. Latest forecasts from the OBR suggest that inflation will hit target in the next few months, and if it does, the central bank will come under tremendous pressure to reduce rates.” Read more in Professional Paraplanner: https://lnkd.in/ecXYyQYs
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Bank of England Maintains #interestrates Rates at 15-Year Peak at 5.25% for the second successive meeting, consistent with recent moves by the Federal Bank and the European Central Bank. The Monetary Policy Committee (MPC) voted 6-3 in favour of maintaining rates, in agreement with economist’s expectations as polled by Reuters. The central bank said the recent decision suggest the monetary policy to remain restrictive for a prolonged duration. While also suggesting further tightening if inflation persisted. Despite #inflation falling from 11.1% over a year ago to 6.7% in the recent data, it is still three times the target set by BoE of 2%. The central bank indicated a flat-lined growth in Britain’s economy with just 0.1% growth expected during the July-September period. While also outlining zero growth in 2024 and a mere 0.25% in 2025.
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In a surprising move, the Bank of England, following a similar approach to the US Federal Reserve, has temporarily paused its rate hike strategy, even as the inflation rate remains significantly above the 2% target, currently standing at 6.7%. This unexpected decision underscores the central bank's cautious approach to economic management, prioritising a delicate balance between controlling inflation and ensuring stability. #inflation #interestrates #ukeconomy
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