VGSH - What Does The Bank Of England's Delayed Rate Cut Imply For U.S.?

2024-06-22 23:08:00 ET

Summary

• If the Bank of England’s decision on Thursday to leave interest rates unchanged is a guide, the outlook for the start date for a US rate cut may be further down the line than generally assumed.
• It’s also striking that UK inflation is well below the equivalent for the US.
• At a high level, the case for standing pat looks much stronger for the Fed vs. BoE given that US inflation - at 3%-plus - is still well above the 2% target.

If the Bank of England’s decision on Thursday to leave interest rates unchanged is a guide, the outlook for the start date for a US rate cut may be further down the line than generally assumed....

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