The Bank of England is expected to keep UK interest rates on hold at 5% as they review data showing inflation over the 2% target. The US Federal Reserve made a surprising half-point cut to interest rates, the first since 2020, citing confidence in the economy. The Bank of England may adjust its bond-buying program, known as quantitative tightening, and we also await interest rate decisions from Norway and South Africa. In the EU, car sales declined, with sales of electric cars dropping significantly. Next, a UK retailer, raised profit forecasts due to strong overseas sales. Investors are hopeful that other central banks will follow the Fed’s lead in cutting interest rates. Donald Trump suggested the Fed’s cut may be political, despite Powell’s assurance it was not. Asian markets rallied after the Fed’s cut, with hopes of easier rate cuts across the region. The UK pound rose against the US dollar, and the FTSE 100 index jumped after the US rate cut. The Bank of England is expected to take a cautious approach to easing monetary policy. Overall, the global economy is experiencing shifts in interest rates and market conditions, impacting various sectors and regions.
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Bank of England likely to maintain current UK interest rates following significant rate cut by the Federal Reserve – live updates on business news
