BoE is expected to stay seated on its hands at today’s meeting [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

US markets breathed a sigh a relief following the Federal Reserve (Fed) decision. The Fed kept its policy rate unchanged as expected, cut the growth forecast and lifted its inflation outlook quite notably but Chair Jerome Powell stressed out that the potential impact of tariffs on inflation would be ‘transitory’ – implying that the Fed could continue to ease policy to support growth. And more importantly, the Fed decided to reduce the pace of Quantitative Tightening (QT) – a move that eases the tightening of the financial conditions. The US equities, bonds and the dollar rebounded.

Today, the Bank of England (BoE) is expected to stay seated on its hands at today’s meeting, but the MPC landscape is quite not smooth: 7 members out of 9 will probably vote for no change, while two doves are expected to favour a 50bp cut, while the Swiss National Bank (SNB) is expected to announce a 25bp cut today.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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