Inflation, Raising Hope and Interest Rate
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The average rate on 30-year fixed home loans registered 6.63% for the week ending Aug. 14, down from 6.58% last week.
Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.
Sweden’s central bank kept interest rates steady to parry a recent spike in inflation and restated the prospect for another cut that may come as soon as next month to support a struggling economy.
Today’s high interest rates won’t last forever. Discover how to maximize what you earn on your savings before a coming Fed cut pushes rates down.
The Bank of England will cut interest rates by a quarter-point once more this year and then again in early 2026 as a resilient economy generates persistent inflation, according to most economists in a Reuters poll who have largely not changed their outlook in the past month.
ANZ, the Australian bank, said it now expected two further interest rate cuts after the dovish pivot. The New Zealand dollar fell 1.1 per cent against the US dollar to a four-month low.
James Sproule, chief U.K. economist at Handelsbanken, discusses the latest British inflation data and its impact on the Bank of England's rate cut trajectory.
Sweden's central bank held its key interest rate at 2.00% as expected on Wednesday and said it still sees some probability of a further rate cut this year as it tries to balance above-target inflation with an economy running in low gear.
Get insights on the 2023 Fed Symposium in Jackson Hole. Explore market expectations, Powell's agenda, and potential rate cuts' impact on the economy.