Policy Statements from Central Banks Have Little Effect on the Upbeat Market Atmosphere
The US Federal Reserve, the European Central Bank, and the Bank of England all issued policy pronouncements last week, but their actions had little impact on the bullish market mood. Despite the fact that these central banks all increased interest rates, they all stated that inflation had probably peaked. The positive US jobs data from last Friday served as a reminder that there are still huge upside risks and that the fight against inflation is far from done.
Rates are increased by the Bank of England for the tenth time in a row.
Last Monday, the Bank of England increased its interest rates by 50 basis points to 4.00%, marking the eleventh consecutive increase. Although the bank suggested that interest rates may have peaked, it also issued a warning that if inflationary pressures continue, more tightening may be required. Today’s live webinar with Bank of England Chief Economist Huw Pill will have investors clamoring for additional details on the future of monetary policy. They will be paying careful attention to observe whether interest rates rise or fall in the upcoming year or in the first half of 2024.
Catherine Mann, an external MPC member, will speak today
Catherine Mann, a guest member of the Monetary Policy Committee, will talk this morning at 08:40 GMT. She concurred with the majority of the committee at the most recent February meeting in favor of the decision to increase rates by 50 basis points.
Today’s Data Releases Include Reports on Retail Sales, the Eurozone Sentix Investor Confidence Survey, and the UK Construction PMI
The UK Construction PMI, the Eurozone Sentix Investor Confidence Survey, and retail sales statistics are among the data releases for today. Forecasts predict that the Reserve Bank of Australia will hike interest rates overnight, bringing the cash rate up by 25 basis points to 3.35%. Since late 2012, this would be the highest rate.