‘Cause for concern’ as UK inflation rises unexpectedly to 3%
The BoE will be trying to avoid stagflation as economic growth becomes a top priority for future rate cuts
interest rates
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Bank of England cuts interest rates to 4.5%
FTSE rose to a record high this morning on expectations of the 25 basis points cut
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US bond market to ‘stay under pressure’ as US Federal Reserve holds rates
The decision to hold interest rates at 4.25-4.5% comes one week after US President Trump demanded a rate cut
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Gilt holdings drop £123m as private investors look elsewhere
Numbers from Lubbock Fine showed holdings dropped from £3.38bn to £3.26bn
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Rate cut expectations being scaled back by investors – AJ Bell’s Mould
Equities could come under pressure
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Investment industry urges BoE to tread carefully following interest rate cut decision
The Monetary Policy Committee voted 8-1 in favour of a 25 basis-point cut to 4.75%
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Calastone: Equity funds suffer worst outflows on record
Bonds balloon by £631m while money markets increase £402m
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Autumn Budget 2024: CPI inflation to average 2.5% in 2024
Will tick up to 2.6% in 2025, but fall to 2% by 2029
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BofA: Investor optimism surges on back of rate cuts and soft landing hopes
Managers have upped equity and lowered bond allocations at a record rate, according to the BofA October global fund manager survey
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UK inflation falls below target for first time in three years
Conditions appear ‘ripe for another rate cut’, according to industry commentators
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How aligned is the Fed Committee on rate cuts?
IG Group North America CEO JJ Kinahan discusses Fed appetite ahead of meeting minutes release
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‘An unprecedented surge in demand’ ahead for bonds as investors ditch cash
Most institutional investors expect up to $2.5trn of capital from money market funds to re-enter bond markets