Catherine Mann, a policymaker at the Bank of England, expressed the view that financial markets have incorporated an excessive number of anticipated interest rate cuts for this year. She also stated that it is improbable for the UK to take action before the US Federal Reserve. Furthermore, she highlighted the UK inflation persisting at higher levels than the United States or the eurozone.
Last week, Mann changed her stance on the bank's Monetary Policy Committee, shifting from supporting a rate hike to advocating for maintaining rates at 5.25%. She justified this decision by pointing out that the labor market is showing signs of weakening and there has been a decline in consumer spending on non-essential services, such as hotels and restaurants.
She expressed that her decision to support the interest rate increase in February was primarily driven by her belief that the financial markets had been experiencing excessive relaxation compared to her perception of the ideal overall trajectory for the UK. Furthermore, she emphasized that the market trajectory holds greater significance in determining economic outcomes than the decisions made by the Bank of England.
City traders are factoring in the likelihood of three interest rate reductions this year, each amounting to a quarter-point decrease. The first decrease could potentially occur as soon as May or June. Money markets assign a 20% probability of a reduction in May, preceding any actions taken by the Federal Reserve or the European Central Bank.
Mann's remarks had minimal impact on traders' expectations of the BOE implementing three rate cuts of 0.25 percentage points each within the current year.
风险提示：本文所述仅代表作者个人观点，不代表 Followme 的官方立场。Followme 不对内容的准确性、完整性或可靠性作出任何保证，对于基于该内容所采取的任何行为，不承担任何责任，除非另有书面明确说明。
喜欢的话，赞赏支持一下
暂无评论。 来发表第一条观点吧。