The pace of US consumer spending looks set to slow down over the medium-to-long term, writes Cherry Reynard The US economy turned in an astonishing performance for the third quarter, growing at an annualised rate of 4.9% between July and September. Financial markets aren’t sure whether to be happy or alarmed at the pace of…
The Federal Reserve held the US base rate steady again last night at a 22-year peak of 5.25–5.5%, as widely expected, writes Alex Sebastian. While the decision to leave rates unchanged was no surprise, Chair Jerome Powell’s accompanying commentary was where the interesting elements were found. While once again reiterating the Fed’s determination to bring…
The European Central Bank (ECB) has decided to hold interest rates at 4%, ending a run of 10 consecutive rate hikes, writes Hannah Williford. The decision comes in the wake of struggling labour markets in Europe, along with mediocre results for household and corporate lending data. The ECB hinted when it last convened in September that…
Would a rate hike pause from the ECB be enough to improve the performance of European stockmarkets? Cherry Reynard has a closer look The European Central Bank appears odds-on to leave interest rates on hold at its October meeting, in spite of rising energy prices. Weakening labour markets, more difficult PMI data and lacklustre household…
Have inflationary pressures eased sufficiently for central banks to start cutting interest rates? Cherry Reynard takes a closer look In recent days, both the US Federal Reserve and – more surprisingly – the Bank of England have chosen to leave interest rates on hold. While both central banks have issued stern words about the need for caution and said…
Eurozone interest rates could remain at restrictive levels for “quite some time” – by Lauren Hardy The European Central Bank’s decision to hike rates for the 10th consecutive time today (14 September) could tip the EU “further into recessionary territory”, according to some investment professionals, who warn the bloc’s financial squeeze could intensify in Q4 2023…
Investors focused on what course the ECB will take after its September meeting
The European Central Bank (ECB) has raised its three key interest rates by 25 basis points each as it works to bring inflation under control. Announcing the move, which follows rises of the same amount in March, May and June this year, the ECB said: “While some measures show signs of easing, underlying inflation remains…
Investors have been left with a difficult judgement to make on the near-term direction of markets after the Federal Reserve held US rates flat at 5 – 5.25% last night. The most notable aspect of the Fed meeting was not the holding of rates, which was widely expected, but the hawkish commentary that accompanied it.…
The national bank of Sweden has said it will raise its policy rate to 3.5%, with further increases expected. In a statement, Sveriges Riksbank said the rise would become effective from 3 May after the executive board gave assent to the increase of 0.5 percentage points. It added the rate would be raised by another…
As industry commentators are split on how aggressive the central bank will be from here on in
But is its first rate rise in 11 years too little, too late?
