The Bank of England (BoE) decided to hold its interest rate at 5% despite the Federal Reserve’s recent 50 basis points cut. The BoE’s decision was influenced by several factors:
As for the European Central Bank (ECB), the Fed’s rate cut, and the BoE’s decision could indeed put pressure on the ECB to consider its own rate adjustments. The ECB will need to balance the economic conditions within the Eurozone, inflation targets, and the actions of other major central banks when making its decision.
What do you think is going on? How is your portfolio taking these schocks?
Governor of BoE in my view is very cautious and sensitive to inflation and has been criticised time and again for over-caution.
The fact that there has been even .1 increase in inflation would not alter his view.
The fact that interest rates is independent of government policy gives the decision makers little room for manoeuvre as they only have fiscal tools at their disposal and this may increase the nation’s fiscal burden as governments always like to tinker with different variables
Governor of BoE in my view is very cautious and sensitive to inflation and has been criticised time and again for over-caution.
The fact that there has been even .1 increase in inflation would not alter his view.
The fact that interest rates is independent of government policy gives the decision makers little room for manoeuvre as they only have fiscal tools at their disposal and this may increase the nation’s fiscal burden as governments always like to tinker with different variables