Rolling coverage of the latest economic and financial news
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The world’s central bankers are facing a conundrum right now. With the Middle East crisis pushing up energy prices, inflation risks lingering, and economies looking weak, should they cut borrowing costs to support growth or raise them to subdue prices?
“Expectations for UK interest rates have shifted materially in recent weeks, with markets now anticipating that the Bank of England will hold rates in March, keeping rates at 3.75%, despite previously pricing in a cut.
The primary driver has been the rise in oil and gas prices linked to the Iran conflict, which has pushed inflation risks higher. This creates a difficult backdrop for both policymakers and investors. In fixed income markets, UK government bonds have already come under pressure at times, with yields rising as rate‑cut expectations have been pared back and, more recently, partly restored. Shorter‑dated bonds are now reflecting a more uncertain path for policy rather than a straightforward easing cycle.
7am GMT: UK labour force report
8.30am GMT: Riksbank interest rate decision
Noon GMT: Bank of England rates decision
1.15pm GMT: European Central Bank interest rate decision
1.45m GMT: European Central Bank press conference
Continue reading…Rolling coverage of the latest economic and financial newsFed holds interest rates steady as Iran war drives up oil prices and inflation fearsMiddle East crisis live: Trump threatens to ‘blow up’ entire South Pars gasfield if Iran strikes QatarGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.The world’s central bankers are facing a conundrum right now. With the Middle East crisis pushing up energy prices, inflation risks lingering, and economies looking weak, should they cut borrowing costs to support growth or raise them to subdue prices?“Expectations for UK interest rates have shifted materially in recent weeks, with markets now anticipating that the Bank of England will hold rates in March, keeping rates at 3.75%, despite previously pricing in a cut.The primary driver has been the rise in oil and gas prices linked to the Iran conflict, which has pushed inflation risks higher. This creates a difficult backdrop for both policymakers and investors. In fixed income markets, UK government bonds have already come under pressure at times, with yields rising as rate‑cut expectations have been pared back and, more recently, partly restored. Shorter‑dated bonds are now reflecting a more uncertain path for policy rather than a straightforward easing cycle.7am GMT: UK labour force report8.30am GMT: Riksbank interest rate decisionNoon GMT: Bank of England rates decision1.15pm GMT: European Central Bank interest rate decision1.45m GMT: European Central Bank press conference Continue reading…