The Monetary Policy Committee voted by a majority of 5-4 to cut interest rates to 4%.
Find out more in our #MonetaryPolicyReport https://t.co/jtJlDzsgEC
The Monetary Policy Committee voted by a majority of 7-2 to maintain #BankRate at 5.25%. Find out more in our #MonetaryPolicyReport: https://t.co/2lnXthHbMt
SUMMARY OF FED DECISION (5/1/24):
1. Fed leaves rates unchanged for 6th straight meeting
2. Rate cuts not appropriate until greater confidence inflation is heading to 2%
3. Fed notes "lack of further progress" toward 2% inflation goal
4. Fed to slow pace of balance sheet runoff starting in June
5. Inflation has eased "but remains elevated"
6. Job market gains "have remained strong"
Higher for longer is officially back.
The UK economy has slipped into recession.
A toxic headline perhaps but stagnation/recession – it’s a bit potayto/potarto for the BOE...
As he said yesterday, Governor Andrew Bailey is still concerned about wage growth and services inflation.
Analysis next on @BloombergRadio
The Monetary Policy Committee voted by a majority of 6-3 to hold #BankRate at 5.25%. Find out more in our #MonetaryPolicyReport: https://t.co/DlCn88I5ut
New money and credit data from the Bank of England out this morning provides helpful insights into how families are continuing to adjust to a world of higher interest rates. A short thread…🧵
After the MPC's decision, markets see c.70% chance of one final 25bp hike. Without doubt, the near-term risks are still to the upside, but it's unlikely that CPI, GDP and lab mkt data will be pressuring the MPC to hike more in November than today. 5.25% looks like the peak to me
BoE Summary
- 25bps (vs. outside calls for 50)
- 8-1 on decision to hike
- Mann + Haskel wanted 50
- Fwd guidance on rates kept
- But.. policy seen as restrictive
- Inflation seen below target in med-term
- 25bps in Sept seen at 69%
- Terminal 5.65% vs. 5.74% pre-release
The Monetary Policy Committee voted by a majority of 6-3 to raise #BankRate to 5.25%. Find out more in our #MonetaryPolicyReport: https://t.co/fGooUBPP4w