The Federal Reserve’s decision announced last night to keep rates on hold has left investors waiting to see the outcome and market impact of the Presidential election before a rate rise is put back on the agenda.
The European Central Bank decided to stick rather than twist today as it announced the deposit rate has been held at -0.4%, the refinancing rate held at zero, and the details of its €80bn per month quantitative easing programme are unchanged.
The ultra-loose monetary policy pursued by central banks since the financial crisis has implied an unprecedented fall in discount rates, which has led to a massive front-loading of returns: not only for bonds, but also for equities. Does this mean you should take your profit now and sell?
The Bank of England’s Monetary Policy Committee has cut interest rates to 0.25%, and committed to a new term funding scheme to “reinforce the pass-through” of the decision into the broader market.
The big macro event of the week for investors in the United Kingdom is the latest iteration of ‘super Thursday’, with the Bank of England making an interest rate decision and releasing its Inflation Report.
The Bank of England’s Martin Weale has hinted he is not ready to vote for cutting the headline interest rate at the Monetary Policy Committee’s next meeting.
The Bank of England has chosen to keep its powder dry by backing off from the interest rate cut that had been hinted at, but is this a U-turn or just minor detour?
Gilt yields have gone negative for the first time in the wake of Mark Carney’s speech on the economy yesterday afternoon.
Bank of England governor Mark Carney has indicated an interest rate cut and other new stimulus measures are on the cards.
A Federal Reserve interest rate rise this month is now widely considered off the table after the latest non-farm payroll number came in significantly below forecasts.
Bank of England Monetary Policy Committee member Gertjan Vlieghe has given a speech indicating an interest rate cut could be on the cards following the referendum on European Union membership.
Flatter global growth likely, but worries of recession are misguided.
