Insights

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

BoE reduces tightening pace and commits to maintaining a restrictive policy Investment Insights • Macro Flash Note

BoE reduces tightening pace and commits to maintaining a restrictive policy

On 3 August the Bank of England’s (BoE) Monetary Policy Committee (MPC) voted to hike interest rates by 25 basis points to 5.25%. With annual inflation at 7.9%, the central bank is expected to raise rates at least twice more to encourage inflation to return to the 2% target. In this Macro Flash Note, economists Joaquin Thul and Sam Jochim look at the outlook for UK inflation and the implications for the BoE’s next steps.

Joaquin Thul

6 min read
Bank of England hikes rates to deal with persistent inflation Investment Insights • Macro Flash Note

Bank of England hikes rates to deal with persistent inflation

Bank of England At its latest Monetary Policy Committee (MPC) meeting, the Bank of England (BoE) raised interest rates by 25 basis points to 4.25%, as anticipated by markets. This represents a reduction in the pace of tightening of monetary policy, after two consecutive 50bps hikes, and the 11th hike since December 2021. In the statement issued after the meeting, the MPC reaffirmed the stability of the UK banking system and reiterated its commitment to bringing inflation down to the 2% target.

Joaquin Thul

3 min read
Bank of England hikes interest rates and gets closer to ending its tightening cycle Investment Insights • Macro Flash Note

Bank of England hikes interest rates and gets closer to ending its tightening cycle

On 2 February the Bank of England’s Monetary Policy Committee (MPC) voted in favour of a 0.5% interest rate increase to 4.0%. This represented the tenth rate increase since December 2021 as the BoE continues to grapple with high levels of inflation. In the press conference after the meeting, BoE Governor Andrew Bailey stressed that the MPC believes it is still too soon to declare victory over inflation as it remains elevated at 10.5% year-on-year (yoy). However, markets believe the central bank is near the end of its tightening cycle.

Joaquin Thul

6 min read
Markets unaffected by anti-Lula protests in Brazil Investment Insights • Macro Flash Note

Markets unaffected by anti-Lula protests in Brazil

A week after Lula da Silva’s inauguration as Brazil’s President on 1 January, attention shifted from budget negotiations to the political protests in the capital Brasilia, highlighting the divisions in Brazilian politics. In this Macro Flash Note, Joaquin Thul explains how financial markets have remained largely unaffected by the protests which are also unlikely to change Lula’s strategy.

Joaquin Thul

5 min read

Required

Required

Required

Required

Required

Required

Required

Optional

Please note you can manage your subscriptions by visiting the Preferences link in the emails you receive from us.

Required