Inflation in the U.K. eased to 3.2% from 3.4% in March, the Office for National Statistics said on Wednesday 17th April 2024. But a higher-than-expected reading creates more concern as investors push back bets on the timing of the first Bank of England (BoE) rate cut. Economists expected 3.1% asRead More →
Markets have fretted about core inflation recently, now analysts are concerned about a highly specific price gauge within the data – ‘supercore’ inflation. This measure tracks services inflation, excluding food, energy, and housing, which has recently surged, rising 4.8% year-over-year in March 2024 and over 8% on a three-month annualisedRead More →
The U.S. economy is on a rip, with employers adding around 303,000 jobs in March 2024 – the largest increase in almost a year. As the world’s largest economy continues to surge, questions arise about the Federal Reserve’s next move regarding interest rates. Stronger-than-expected Job Growth The unemployment rate fellRead More →
Eurozone inflation eased to 2.4% in March 2024, as indicated by preliminary figures released on Wednesday 3rd April 2024. This decrease has increased expectations that interest rate cuts may start in the summer 2024. Market analysts anticipate that the central bank will commence reductions in interest rates starting in JuneRead More →
Federal Reserve Chairman Jerome Powell stated on Wednesday 3rd April 2024 that policymakers will need time to assess the current inflation situation, leaving the schedule for potential interest rate reductions unclear. Referring to the stronger-than-anticipated price pressures at the year’s onset, Powell reportedly stated that he and his colleagues areRead More →
In a move that reverberated across global financial markets, the Bank of Japan (BOJ) recently bid farewell to its negative interest rate policy – the last of its kind in the world. This decision marks a pivotal moment in the realm of central banking and has far-reaching implications for economiesRead More →
The U.S. Consumer Price Index, a comprehensive gauge of the cost of goods and services, rose by 0.4% for the month and increased by 3.2% compared to the previous year. The annual rate was marginally higher than expected. The monthly rate was slightly above the forecast of 0.3%. This mayRead More →
In his Capitol Hill testimony on 6th March 2024, Federal Reserve Chairman Jerome Powell reiterated that was not yet time to begin cutting interest rates. To fight inflation, which reached a rate of 9% in the summer of 2022, the central bank has significantly increased interest rates in recent times. However, prices are still stubborn, especiallyRead More →
UK interest rates have been left unchanged at 5.25% by the Bank of England as widely expected by commentators. It is the fourth time in a row the Bank has held rates at 5.25%. The Bank of England had previously raised rates 14 times in a row to curb inflation,Read More →
The Federal Open Market Committee (FOMC) held interest rates steady and indicated a willingness stop raising interest rates. But a cut anytime soon is unlikely until inflation is brought fully under control and nearer to the Fed’s 2% inflation target. The Federal Reserve sent a signal that it is finishedRead More →
Turkey’s central bank on Thursday 25th January 2024 hiked its key interest rate to 45%. It comes amid an ongoing struggle against double-digit inflation for Turkey’s policymakers, with the rate hike the latest step in that ongoing fight. 30 Turkish Lira to 1 U.S. dollar Inflation in Turkey increased nearly 65%Read More →
Inflation, rose marginally to 4% in December, up from 3.9% in November 2023. Economists had forecast a slight fall but unexpected rises in alcohol and tobacco prices were behind the surprise rise. However, with energy bills predicted to come down in 2024, there are still expectations of interest rate cutsRead More →
Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday 3rd January 2024. FOMC meeting minutes The rate-setting Federal Open Market Committee (FOMC) agreed to keepRead More →
Mortgage lenders have started 2024 by cutting interest rates. The UK’s biggest lender, the Halifax, has cut some interest rates by nearly a full 1%, with other lenders expected to follow suit. HSBC has announced it will also make cuts in January. Halifax is reducing its rates, with interest onRead More →
Federal Reserve members, in their most recent meeting, gave little indication of cutting interest rates anytime soon, particularly as inflation remains well above their goal of 2%, according to minutes released Tuesday 21st November 2023. The detail of the meeting held 31st October – 1st November 2023, showed that FederalRead More →
Probably not, any time soon… Observing the data available at CME FedWatch the stock market does not seem to expect the Fed to start cutting rates aggressively anytime soon, this opinion is based on the current pricing data of the fed-funds futures market. According to the CME FedWatch Tool, theRead More →
Fed Chair Jerome Powell reportedly said he and his colleagues remain steadfast in getting policy in line with their 2% inflation target, but ‘we are not confident that we have achieved such a stance’. He stressed the Fed nevertheless can be cautious as the risks between doing too much andRead More →
The U.S. central bank has held its key interest rate at its current 22-year high as it seeks to stabilise price increases, which had recently reached near-record levels. The Federal Reserve’s rate remains at 5.25%-5.5%. The bank has been raising interest rates in an attempt to tame the economy andRead More →
House prices had the biggest monthly rise in October for more than a year, according to the Nationwide Building Society. However, they were still down sharply on a year ago, the UK’s biggest building society noted. The rise in prices was most likely due to there not being enough propertiesRead More →
Central banks, 18 months ago got it fundamentally wrong and they got it wrong on many other occasions too. So why take any notice? The Fed and other central banks insisted that inflation would be ‘transitory’ – it wasn’t. It reached 7%. That’s 5% above the target of 2%. Along withRead More →
The average rate on the popular 30-year fixed mortgage rose to 7.72% on Tuesday 3rd October 2023, according to latest data Mortgage rates follow loosely the yield on the 10-year Treasury, which has been climbing this week following strong economic data. Rates have not been this high since the end of 2000. AtRead More →
UK interest rates have been left unchanged at 5.25% by the Bank of England (BoE). The decision comes a day after figures revealed an unexpected slowdown in UK nflation in August 2023. The Bank had previously raised rates some14 times in a row to tackle inflation, leading to increases inRead More →
Fed holds steady The Federal Reserve held interest rates steady in a decision released Wednesday 20th September 2023, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. That final increase, if realised, would be it forRead More →
Eurozone interest rates have been hiked again to a record high by the European Central Bank (ECB). The bank raised its key rate for the 10th time in a row, to 4% from 3.75%, as it warned inflation was expected to remain too high for too long. The latest increaseRead More →
The Nationwide Building Society says house prices are 5.3% lower compared to August last year, in the biggest annual decline since 2009. Nationwide said the drop represented a fall of £14,600 on a typical home in the UK since house prices peaked in August 2022. It also said higher borrowingRead More →
The latest U.S. mortgage rates are the highest they have been in decades. The average 30-year fixed-rate mortgage rose to 7.23% in the week ending 25th August 2023, up from 7.09% the week before, according to latest bank reports from U.S. This is the highest level since June 2001, when it wasRead More →