BOE TO CUT GILT-PURCHASE STOCK BY £100B OVER NEXT 12 MONTHS
Day: September 19, 2024
📰 BANK OF ENGLAND MAINTAINS KEY INTEREST RATE AT 5% IN 8-1 VOTE
BANK OF ENGLAND MAINTAINS KEY INTEREST RATE AT 5% IN 8-1 VOTE
📰 🔸MARKET VOLATILITY LIKELY TO RISE AFTER U.S. FED’S 50 BASIS-POINT RATE CUT: BLACKROCK The U.S. Federal Reserve’s 50 basis-point interest-rate cut could boost markets in the near term but raises the risk of increased volatility in the coming months if U.S. inflation and economic growth don’t align with the Fed’s projection, Jean Boivin, head of the BlackRock Investment Institute says in a note. “Given what is an extremely uncertain outlook and the divided opinions before the Fed’s blackout period, the near unanimity on [Wednesday’s] decision is perhaps more surprising than the one dissent.” Markets price in 71 basis points of further Fed rate cuts in 2024, LSEG Refinitiv data show. “We still think market rate-cut expectations will ultimately be disappointed and the positive news will instead come from resilient growth,” Boivin says.
🔸MARKET VOLATILITY LIKELY TO RISE AFTER U.S. FED’S 50 BASIS-POINT RATE CUT: BLACKROCK The U.S. Federal…
📰 🔸FED’S 50 BASIS-POINT RATE CUT HINTS AT UNNECESSARY PANIC It is hard not to detect a whiff of unnecessary panic in the Federal Reserve’s 50-basis-point interest rate cut, says Julian Howard, chief mulit-asset investment strategist at GAM Investments. The is “marking the start of what many see as a cycle of interest rate cuts designed to support the U.S. economy as inflation settles back down to its 2.0% target,” he says. Meanwhile, U.S. unemployment remains at 4.2%, which is low by the standard of the last three decades, and the latest nonfarm payrolls report was also fairly robust at 142,000 job additions in August, he says.
🔸FED’S 50 BASIS-POINT RATE CUT HINTS AT UNNECESSARY PANIC It is hard not to detect a…