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Janet Mui: weekly economic update 11 July

The US Federal Reserve now looks likely to cut interest rates later this month. In the UK, activity remains subdued.



Janet Mui
Global Economist, Cazenove Capital

Powell focused on risks to US economy

The chairman of the Federal Reserve chose to emphasize the risks of slowing global growth in his semi-annual report to the US Congress. This was seen as a clear signal that the Fed will cut interest rates when it meets at the end of July.

UK economic activity remains sluggish

UK output increased very slightly in May, following a weak April. However, businesses and consumers remain cautious and the Bank of England is likely to adopt a more dovish stance.

Latest data suggests Chinese inflation remains contained

There is little sign of underlying inflationary pressure in the Chinese economy, despite a sharp rise in the price of pork. This gives Beijing more scope to implement accommodative monetary policy if needed.  

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

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


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