Snapshot - Strategy & economics
Janet Mui: weekly economic update 1 August
The Federal Reserve cuts rates but leaves markets unimpressed. In the UK, the Bank of England faces questions on its policy response to a "no-deal" Brexit
- The Fed has cut rates by a quarter of a percentage point, but markets are dismayed at the lack of indication of future cuts to follow
- The cut is billed as a "mid-cycle adjustment" and a pre-emptive move, in the manner of insurance
- In the UK rates were left unchanged, and the Bank of England's Mark Carney was subject to numerous questions about policy response to a "no-deal" Brexit. He failed to answer in any detail other than to say that a no-deal scenario would see the UK economy slow, inflation rise and the pound fall
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