Multiple outlets report that the US Federal Reserve and the Bank of England are expected to keep interest rates unchanged in their upcoming meetings, with attention on how an Iran-related peace deal could affect inflation. The Guardian says the Fed is expected to hold its benchmark policy rate in a range of 3.5% to 3.75% on Thursday. The decision is described as the first policy call under newly appointed Fed chair Kevin Warsh, who is identified as a Trump pick. The reported rationale is that improved prospects for stability in the Middle East reduce risks to oil markets and overall economic uncertainty, which can ease inflation pressure. Other coverage links the Iran truce to reduced threats of further rate increases and to expectations of lower inflation. Several sources also point to falling oil prices as a potential factor that could lessen pressure on the Fed to tighten monetary policy. While specific meeting outcomes are not yet confirmed, the reporting converges on expectations of “on hold” rate decisions in the US and UK, influenced by the perceived macroeconomic effects of the Iran peace developments.
US Federal Reserve and UK central bank expected to hold rates amid Iran peace deal
Multiple outlets report that the US Federal Reserve and the Bank of England are expected to keep interest rates unchanged in their upcoming meetings, with attention on how an Iran-related peace deal c...
- The US Federal Reserve is expected to keep its benchmark interest rate unchanged at a 3.5% to 3.75% range.
- The upcoming Fed decision is described as the first under chair Kevin Warsh.
- The Bank of England is also expected to leave interest rates on hold.
- Coverage links the Iran peace deal/truce to easing inflationary pressures and reducing rate-hike risks.
- Falling oil prices are cited as a factor that may reduce pressure for further Fed tightening.
US and UK central banks expected to keep interest rates on hold amid Iran peace deal The GuardianWhat US-Iran peace deal means for UK interest rates The IndependentMiddle East breakthrough boosts hopes for lower inflation Business MotoringUBS Group believes that falling oil prices will ease the pressure on Federal Reserve Chair Kevin Warsh to raise interest rates. 富途牛牛The US-Iran truce has dialed back one of the biggest threats to stocks: rate hikes Business Insider
13 hours agoFederal Reserve to make first decision under Kevin Warsh as Middle East hopes ease inflation pressuresBusiness live – latest updatesCentral banks in the US and UK are expected to leave interest rates on hold this week as the peace deal in the Middle East is expected to ease inflationary pressures.The US Federal Reserve is expected to hold its benchmark interest rate at a range of 3.5% to 3.75% on Thursday, in what will be the first policy decision under new Fed chair – and Donald Trump’s pick – Kevin Warsh. Continue reading...
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