0 6 N O V E M B E R 2 0 2 4 • I S S U E 4 7

Market Mood

This Thursday, both the U.S. Federal Open Market Committee (FOMC) and the Bank of England are expected to announce 25 basis point interest rate cuts in response to easing inflation pressures and efforts to stimulate economic growth. The FOMC’s anticipated cut would bring the U.S. federal funds rate to a range of 4.50-4.75%, with additional cuts likely in December and possibly extending into 2025, contingent on the outcome of the upcoming U.S. election. Meanwhile, the Bank of England's expected reduction to a 4.75% Bank Rate aligns with its recent policy loosening, though the UK’s Autumn Budget has led to moderated expectations for further cuts. Revised inflation forecasts from the UK government’s fiscal forecaster now project inflation to average 2.6% in 2025, up from an earlier estimate of 1.5%. Additionally, markets are closely watching new global PMI data and U.S. ISM surveys for insights into the health of manufacturing and service sectors, as central banks face challenging decisions amid complex economic and political landscapes.

Download Full Version