The BoE unexpectedly left the Bank Rate unchanged at last week’s meeting. The decision followed a surprise drop in headline inflation, which coupled with weaker than expected growth suggested that policy settings are now sufficiently restrictive to bring inflation down lastingly. Markets have trimmed expectations for peak rates in the UK substantially, and we see
Share: 41 of 70 economists polled by Reuters said that they expect the European Central Bank (ECB) to wait until at least the third quarter of 2024 before lowering rates. All 70 economists said they expect the ECB’s key deposit facility rate to remain unchanged at 4% through to year-end. Market reaction The
EURUSD 10 m What’s priced in for the ECB ahead of today’s speech from President Christine Lagarde and her 3 pm ET speech? The market is priced 50/50 for whether there will be a hike on September 14 and that rises to above 70% for the October meeting and then fades in 2024. I wrote
2/2 © Reuters. FILE PHOTO: President of Brazil Luiz Inacio Lula da Silva, President of China Xi Jinping, South African President Cyril Ramaphosa, Prime Minister of India Narendra Modi and Russia’s Foreign Minister Sergei Lavrov pose for a BRICS family photo during the 2 2/2 By Rachel Savage and Karin Strohecker JOHANNESBURG/LONDON (Reuters) – The
