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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

02/08/2019
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Authors

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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Authors

Janet Mui
Global Economist, Cazenove Capital

Topics

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at IFC1, Esplanade, St Helier, Jersey, JE2 3BX, (No.31076).

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