• Fed Reduces Target Rate by 25 Basis Points

    Fed Reduces Target Rate by 25 Basis Points

    • November 7, 2024

    In a unanimous decision, the US Federal Reserve (Fed) reduced the fund target rate by 25 basis points (bps) today and was widely priced in by investors. The decision brought the target rate to 4.50-4.75% and followed the 50bp reduction at September’s meeting. Rate Statement The rate statement maintained its message regarding economic activity continuing

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  • Bank of England Reduces Bank Rate by 25 Basis Points

    Bank of England Reduces Bank Rate by 25 Basis Points

    • November 7, 2024

    In an 8-1 vote, the Bank of England’s (BoE) Monetary Policy Committee (MPC) decided to reduce the Bank Rate by 25 basis points (bps) to 4.75%. This marks the second cut this year and was widely expected by markets and economists. BoE policymaker Catherine Mann (an external member), the sole dissenter, opted to keep the

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  • Trump Trade Unwinding

    Trump Trade Unwinding

    • November 5, 2024

    The US election result between former President Donald Trump and Vice President Kamala Harris is only hours away. Harris Takes Modest Lead While it has all been about the ‘Trump Trade’ over the past few weeks, the tide seems to have shifted in favour of Harris, and the US dollar (USD) is responding accordingly. The

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  • Week Ahead: Bank of Canada Takes Centre Stage as Investors Price In a 50 Basis Point Cut

    Week Ahead: Bank of Canada Takes Centre Stage as Investors Price In a 50 Basis Point Cut

    • October 20, 2024

    The Week That Was: Earnings season kicked off on a high note, with most results exceeding estimates and lifting US equity indices to fresh record highs. This, coupled with China’s fresh round of stimulus measures failing to inspire investors, tier-1 data from G10 economies, and the European Central Bank (ECB) announcing another 25 basis point

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  • Back-to-Back Rate Cuts for the ECB

    Back-to-Back Rate Cuts for the ECB

    • October 17, 2024

    As widely expected by markets and economists, the European Central Bank (ECB) reduced all three key benchmark rates by 25 basis points (bps) today amid easing inflationary pressures. This places the deposit facility rate, the main refinancing rate and the marginal lending facility rate at 3.25%, 3.40% and 3.65%, respectively. It also marks the central

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  • UK Inflation Softens Across Key Metrics; GBP Falls

    UK Inflation Softens Across Key Metrics; GBP Falls

    • October 16, 2024

    According to a report released by the Office for National Statistics (ONS) this morning, UK inflationary pressures in September eased across all key indicators. This, of course, will be welcomed news for the Chancellor of the Exchequer, Rachel Reeves, as she prepares to deliver her first Annual Budget at the end of the month. CPI

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  • UK Jobs Data; November Rate Cut Likely

    UK Jobs Data; November Rate Cut Likely

    • October 15, 2024

    According to the Office for National Statistics (ONS), UK unemployment fell to 4.0% (June to August 2024), down from 4.1% in the previous three months and hit levels not seen since the beginning of this year. Wage Growth Continues to Slow Both regular pay and pay that includes bonuses slowed again in the three months

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  • Week Ahead: What Are the Financial Markets Watching This Week

    Week Ahead: What Are the Financial Markets Watching This Week

    • October 13, 2024

    The Week That Was: RBNZ Slashed Rates by 50bps The week kicked off with the Reserve Bank of New Zealand (RBNZ) reducing its Official Cash Rate (OCR) by 50 basis points (bps) to 4.75%, a move that was widely expected and marked the central bank’s second consecutive rate cut this year. The RBNZ signalled that

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  • UK Economic Activity Posts Modest Growth

    UK Economic Activity Posts Modest Growth

    • October 11, 2024

    This morning’s latest figures from the Office for National Statistics (ONS) revealed that UK real GDP (Gross Domestic Product) grew by 0.2% in August, matching the market’s median estimate and following zero growth in June and July. In the three months to August, real GDP also increased by 0.2%, marking a slowdown from the downwardly revised print

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  • US Inflation Stalls in September

    US Inflation Stalls in September

    • October 10, 2024

    According to a report released by the Bureau of Labor Statistics (BLS) earlier today, US CPI inflation (Consumer Price Index) was higher than median expectations on all key measures in September. In fact, all prints, both MoM and YoY, matched the market’s maximum estimates according to Refinitiv data. This will also be the last inflation

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  • RBNZ Reinforces Dovish Stance and Delivers 50bp Cut

    RBNZ Reinforces Dovish Stance and Delivers 50bp Cut

    • October 9, 2024

    Overnight, the Reserve Bank of New Zealand (RBNZ) reduced its Official Cash Rate (OCR) by 50 basis points (bps) and signalled further policy easing is on the table amid softening inflation. This leaves the current OCR at 4.75%. Cuts Ahead The accompanying Rate Statement communicated that the current economic landscape provides scope to reduce rates further.

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  • Week Ahead: What Are the Financial Markets Watching This Week

    Week Ahead: What Are the Financial Markets Watching This Week

    • October 6, 2024

    The Week That Was: All About the Fed The week started with US Federal Reserve (Fed) Chair Jerome Powell taking centre stage on Monday and effectively pouring cold water on rate-cut bets. Powell indicated that the Fed would likely opt for the more standard 25 basis point (bp) rate cuts; ‘This is not a committee

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