| Dear *|FNAME|*
Rate Cuts?
US = not yet
Eurozone = next month
UK = who knows!
This is the general consensus. The Federal Reserve is grappling with a strong economy as well as stickier inflation, which gives a stronger argument to keep rates steady for now, but the easing inflation story in the Eurozone leaves the door wide open for rate cuts in June.
The UK on the other hand is still feeling the pressure of wage growth. Wages in the UK have grown faster than expected, putting at risk the prospect of a rate cut next month. However, these figures (announced earlier this week) do include bonuses, which is a one off, so we should see some moderation in growth over the next few months. Unemployment does seem to be on the rise, so it really is an unknown as to whether the rate cut will come in June. We shall see… |
