Insights

Trends, news, analysis and insight brought to you by our network of global experts.

BoE delivers a hawkish rate cut, while concerns about second-round effects persist Investment Insights • Macro

BoE delivers a hawkish rate cut, while concerns about second-round effects persist

The Bank of England (BoE) Monetary Policy Committee (MPC) voted by a narrow margin of 5 to 4 to reduce Bank Rate by 25 basis points (bps) to 5.0%. The fading impacts of past external shocks and a normalisation in wage and price setting behaviour explain the decision to ease monetary policy. In this Macro Flash Note, Economist Joaquin Thul delves further into these factors.

Joaquin Thul

3 min read
Not all small caps are created equal Investment Insights • Macro

Not all small caps are created equal

US small-cap companies had a strong start to the second half of the year, with a rally of over 10.5% so far in July, after underperforming large-cap companies by almost 15% in the first half of 2024. The weaker-than-expected reading of the June Consumer Price Index (CPI) index triggered a rotation from investors into parts of the market that had so-far lagged. In this Macro Flash Note, Economist Joaquin Thul argues that while the asset class may look attractive, investors should remain selective in their small-cap exposure.

Joaquin Thul

3 min read
UK economic outlook in a changing policy environment Investment Insights •

UK economic outlook in a changing policy environment

After 15 years of Conservative Party governments, the Labour Party looks likely to win the next UK general election. It aims to bring a pro-business and pro-EU approach to Downing Street. At the same time, falling inflation and wage growth will allow the Bank of England (BoE) to start cutting interest rates later in 2024. In this Infocus, Economist Joaquin Thul explains the reasons behind the improved outlook for the UK economy.

Joaquin Thul

3 min read

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