The Bank of England has lowered its benchmark rate by 25 basis points to 4.75%, in line with market expectations. This reduction follows a steady rate in September and a similar 25 basis point cut in August.
The Bank of England has lowered its benchmark rate by 25 basis points to 4.75%, in line with market expectations. This reduction follows a steady rate in September and a similar 25 basis point cut in August. Meanwhile, the U.S. Federal Reserve is expected to announce another 25 basis point cut today, building on its larger 50 basis point reduction in September. The focus is on any policy guidance amid rising economic uncertainty, especially following Donald Trump’s re-election, which has refocused market attention on inflation concerns and potential shifts in fiscal policy.
If current trends persist, gradual rate cuts are likely. The Bank's main priority remains achieving low and stable inflation to support sustainable economic growth and improve long-term prosperity.
Should inflation stay close to the target, further rate reductions are anticipated. However, there is also a risk of inflation exceeding expectations. While overall inflation aligns with targets, certain service costs are rising at an unsustainable rate. As a result, the BoE must be cautious, avoiding drastic or rapid rate cuts to ensure price stability and support economic resilience in the coming years.
Source: Bank of England Monetary Report
Global markets remained focused on shifting Middle East developments and monetary policy expectations, with reports of progress toward a Strait of Hormuz shipping agreement influencing sentiment.
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Weak Jobs Data Hits Dollar as Hormuz Risks Persist (10 – 14 August)Global markets entered the week as investors reassessed the Federal Reserve's outlook after a surprisingly weak US employment report signaled further deterioration in labor market conditions. The Dollar Index fell toward a two-month low, while gold and silver held onto strong weekly gains as expectations for a September Fed rate hike dropped sharply. At the same time, uncertainty surrounding the Strait of Hormuz continued to influence oil prices and global inflation expectations, with Iran and Oman reporting progress toward a transit agreement but no broader resolution yet reached.
Detail Weak Jobs Data Supports Metals and Currencies (08.10.2026)Global markets opened the week with the dollar under pressure after unexpectedly weak U.S. employment data reduced expectations for a September Federal Reserve rate hike.
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