Previous Trading Days Events 09.05.2024

The Bank of England start interest rate cuts as soon as next month and Governor Andrew Bailey said there could be more reductions than investors expect.

The BoEs Monetary Policy Committee kept rates at a 16year high of 5.25. After cutting rates in March 2020 as the coronavirus pandemic swept the world, the BoE began raising borrowing costs in December 2021 to counter high inflation which peaked at 11.1 in October 2022.

The central bank remains on guard as there is still strong growth in wages and services prices which it expects to temporarily push inflation above 2 later this year.

Bailey We need to see more evidence that inflation will stay low before we can cut interest rates, he said. Im optimistic that things are moving in the right direction.

Source httpswww.reuters.commarketseuropebankenglandclearspathitsfirstratecutsince202020240509

The number of Americans filing new claims for unemployment benefits rose last week to the highest level in more than eight months, further evidence that the labour market is cooling. 

Initial claims for state unemployment benefits increased by 22,000 to a seasonally adjusted 231,000 for the week ended May 4, the highest level since the end of last August.

It follows reports last week which showed the economy added the fewest jobs in six months in April while job openings dropped to a threeyear low in March.

Expectations for an interest rate cut from the Federal Reserve at its…