The Bank of England
A growing concern on the wage prices and cost of living are prompting the Bank of England’s decision to become more hawkish on the interest rate. In fact, the central bank held the rate tight last night and will approach the next decision by “gradual and careful” loosening. Out of 9 BOE members, only one is in favored for easing, which came lower than expected and delivered a sounded hawkish compared to the last vote split. According to Dan Hanson and Ana Andrade, “Our base case is that the central bank cuts rates three more times this year with the next move in May,” albeit they also iterated that the rate decision may come less than expected.
Trump and Ukraine Mineral Deal
President Donald Trump announced that the U.S will soon sign a mineral and natural resource deal with Ukraine, stating that previous peace talks between Ukraine and Russia were progressing well.
The Bank of Canada
According to Bank of Canada Governor Tiff Macklem, “We will proceed cautiously with any further changes to our policy interest rate,” indicating a more reactive approach to trade developments influenced by President Donald Trump. He also expressed a commitment to ensuring that trade uncertainties do not escalate into an inflationary issue.
