🇺🇸 Federal Reserve (Fed)
The Fed cut rates by 25 bps on 17 September, bringing the target range to 4.00%–4.25%. This marks the first cut since December. Officials signal two more cuts may follow before year end if inflation continues to ease and the labour market weakens. Inflation remains above the 2% target, but risks to employment are growing.
🇬🇧 Bank of England (BoE)
The BoE kept its Bank Rate unchanged at 4.00%. Two members of the committee supported a cut. The Bank also slowed the pace of quantitative tightening, reducing its planned gilt holdings by £70 billion over the next 12 months instead of £100 billion previously. The focus of gilt sales will shift towards shorter maturities. Inflation stood at 3.8% in August, expected to rise slightly before declining towards target. Wage growth is still high but showing signs of cooling.
🔍 What it means for traders
The Fed has started easing, while the BoE remains cautious. This policy divergence could shape USD and GBP dynamics in the months ahead. Watch upcoming jobs and inflation data closely, as they will guide the next moves.
✅ Summary
Fed cut to 4.00%–4.25%, with more cuts expected this year. BoE held at 4.00% but slowed QT, signalling a cautious stance.
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🧐 Central Banks in Spotlight: Fed and BoE Moves was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
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