UK Bank of England interest decision, rate held at 0.75%

Bank of England interest rate

BoE decision After much media hype surrounding the ‘will they won’t they cut interest rate debate’, the Bank of England‘s Monetary Policy Committee – (MPC) decided Thursday 30th January 2020 to keep interest rates unchanged at 0.75% This is Mark Carney’s final rate call as the UK commences Brexit stage one, and officially and legally moves away from the EU. Carney’s last call Brexit takes centre stage The UK will now start Brexit ‘stage two’ negotiations in earnest as we officially exit the EU at 11pm on 31st January 2020.…

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Fed announce interest rate cut of 0.25%

Interest rates down

The Federal Reserve announced on 30th October 2019 an interest rate reduction of 0.25% This will lower the Federal funds target rate to between 1.5% -1.75%. It was also reported earlier Wednesday that third quarter GDP growth rose at a better than expected 1.9% annual rate. The Fed signalled a pause – the FOMC statement removes comment to ‘act as appropriate’ when talking about rate-cut flexibility. Jerome Powell has previously described the easing as a ‘mid-cycle adjustment’ to guard against possible downside risks. Economists said the U.S. central bank did…

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The Federal Reserve interest rate decision

Federal Reserve

The Federal Reserve interest rate decision is due today at: 19:00 BST. The Federal Reserve has a clear mandate from the U.S. Congress to promote maximum employment and to maintain price stability. If inflation is too high, or it thinks it is heading that way, the Fed will raise interest rates. It will cut rates if it thinks there is a danger of economic growth slowing too much or inflation being too low. Rate cuts make it more attractive for business to borrow to invest and for the consumer to…

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Will the Fed cut interest rates next week? U.S. markets expect it!

U.S. stock markets have increased on the back of heavy investor interest rate cut speculation. Investors are betting on an interest rate cut. This will most probably happen, but the question now is, by how much? The Federal Reserve Bank The Fed disappointed the stock markets in December 2018, and I don’t expect that will happen again. Recent economic news has been better than expected but talk of global economic slowdown persists. Not least because of the U.S. China trade war escalation. The U.S. – China trade war, interest rate…

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Savings account, best 1 and 3 year fixed UK deals, familiar name account

Best ‘name you will know‘ savings account (others are available) Please note… The information provided here is an opinion. It is NOT a recommendation and we DO NOT receive payments or ‘referral fees’ from the company in question – no affiliation. Just so you know. This information was generated on 16th. July 2019 and correct as of then. Please also be sure to check this section for any new posts after this date. Better deals may follow, or this deal may end. Interest rates Current interest rates on savings accounts…

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Fed rate cut now more likely to happen in July after latest Fed comments

Interest rate cut

Headwinds brewing? Trade concerns and an uncertain economic outlook make a Fed July interest rate cut highly probable after Fed chair, Jerome Powell addressed his concerns to U.S. congress. Comments made by the Fed suggests that growth in the second quarter appears to have moderated, business investment appears to have slowed, weak inflation may become more persistent and trade tensions weighing on economic growth still linger. Market expects rate cut So, markets rate cut ‘expectations’ appear to have been confirmed by the Fed. And yet, again, it’s a case of…

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Compound interest, an investors best friend

Compound interest, an investors best friend This is why? The concept is very simple. Compound interest is simply interest added back to the original or principal sum and then more interest is earned or calculated on ‘that’ added interest over the next compounding period. Like this…Year one… Over a one year period: Take £1000 capital and add 5% interest (lucky if you can get it). That equals to £1050. That’s 1000 x 5% over 1 year = £1050. Now this is the best bit… Take your £1050 from the first…

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U.S. interest rates, economic data and the Fed

Earnings season

The U.S. earnings season is almost upon us and this data will likely move markets more so than usual My dilemma is what the Fed will do regarding interest rates in either of these ‘what if scenario’s…‘ And the dilemma is… First – What if we see weaker than expected growth from the earning season reports. Will this offset a Fed rate cut? Second – Will the Fed follow through with a rate cut if the data is weak? Third – Recent strong job data has investors worried that the…

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