Central banks unlikely to cut rates despite inflation hitting 2%, indicating neutral impact on market.

From Forbes: 2024-06-19 12:32:50

19 June: Bank of England is expected to keep borrowing costs at 5.25% despite annual inflation falling to 2% in May 2024, matching the government’s long-term target. Monthly Consumer Prices Index rose by 0.3% compared to 0.7% last year. Analysts predict a rate cut is unlikely despite the positive inflation news.

12 June: US Federal Reserve maintains interest rates between 5.25% and 5.5%, citing uncertain economic outlook. CPI shows 3.3% annual inflation in May. Market hopeful for a rate cut later this year. Fed remains focused on price stability despite mixed labour market signals.

6 June: Eurozone borrowing rates cut by 0.25% to 4.25%, first decrease since 2019. Inflation nudged up to 2.6% in May from 2.4% in April, exceeding ECB’s 2% target. ECB cites improved inflation outlook and monetary policy transmission for rate reduction. No commitment to further cuts in near future.



Read more at Forbes: Prices Rising At Bank Target Of 2% But Little Hope Of Rate Cut – Forbes Advisor UK