Bank of England Rate Decision

Join research director Kathleen Brooks today at 12:15 BST, as she reviews the Bank of England decision and the live market reaction.

Also find out how the Fed meeting impacted markets, and what the US/ UK trade deal means for stocks and risky assets.

Join Kathleen Brooks at 12:15 BST here

As meetings go, this Fed meeting was mundane. The Fed chair was careful to reinforce how uncertain the economic environment is, and he repeated the message that the Fed will remain on hold for the foreseeable. Fed chair Powell is happy with the current monetary policy stance of the FOMC, and also with the solid core economic data. He also expects an upward revision to the US Q1 GDP report, which may ease fears about US recession risks.

The Federal Reserve remained on hold at this meeting, as widely expected by the market. The statement that was included with the decision had some subtle changes. The Fed is concerned about stagflation risks, saying that ‘the risks of higher unemployment and higher inflation have risen.’ The Fed statement did not mention tariffs directly, however, they noted the impact of them via economic uncertainty and upside risks to unemployment and inflation.

The current Bank Rate stands at 4.5%, and many traders believe the key question is whether the Monetary Policy Committee will opt for a quarter-point cut to 4.25% or go for a larger half-point reduction to 4%.

As of this morning, a quarter-point cut is the more likely outcome, with a 95% chance priced into the money markets. A half-point cut would be a surprise, with only a 5% probability. 

Join Kathleen to find out more and how the decision will affect the markets.