20 March: Fed Holds Rates Ahead Of Bank Rate Announcement
UK annual inflation fell by more than expected to 3.4% in February this year, its lowest since autumn 2021 and down from the 4% where it had been stalled since last December, writes Andrew Michael.
The announcement will strengthen arguments for the Bank of England to start cutting interest rates, with it having made significant progress in bringing down what has been a sustained period of rising prices.
Today’s Consumer Prices Index, from the Office for National Statistics (ONS), shows that prices rose by 0.6% last month, compared with a rise of 1.1% in February 2023.
Core CPI, which omits volatile data covering energy, food, alcohol and tobacco, stood at 4.8% in the year to February this year, down from 5.1% a month earlier.
CPI including owner-occupier costs (CPIH) rose by 3.8% in the 12 months to February this year, compared with 4.2% in January. On a monthly basis, CPIH rose by 0.6% in February, compared with a rise of 1% for the same month last year.
The Federal Reserve has today held interest rates in a range between 5.25% and 5.5%, with the strength of the US economy reinforcing its desire to wait before implementing cuts, writes Andrew Michael.
Explaining its reasons, the Fed said: “Recent indicators suggest the economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over…
