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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



Janet Mui
Global Economist, Cazenove Capital
  • 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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Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.


Janet Mui
Global Economist, Cazenove Capital


Federal Reserve
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