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That would be a lag of eight months, significantly longer than the average gap between last hike and first cut going back decades. "In the past markets have tended to underestimate how high rates are raised and underestimate how low rates are cut. Inflation targeting, more sophisticated financial markets, transparent central bank communications, and greater central bank autonomy since the 1990s have all contributed as well. Brazil's central bank, one of the first to raise rates in early 2021, has started cutting them after a 12-month pause. Current market pricing suggests that will not come until 2025, which would be an even longer lag.

Persons: Jerome Powell, Andrew Kelly ORLANDO, Richard de Chazal, William Blair, de Chazal, Joe Lavorgna, BoE, Milton Friedman's, Jamie McGeever, Richard Chang Organizations: New York Stock Exchange, REUTERS, Federal Reserve, Nikko Securities America, Bank of, Reuters, The Reserve Bank of Australia, Thomson Locations: New, New York City, U.S, Andrew Kelly ORLANDO , Florida, Brazil's

☆ Miyazawa strikes again as Japan beat Norway to reach quarter-finals
▼ + stars: | 2023-08-05 | by ( ) www.reuters.com time to read: +3 min

WELLINGTON, Aug 5 (Reuters) - Hinata Miyazawa scored her fifth goal of the tournament as Japan beat Norway 3-1 in a clash of former champions on Saturday to reach the quarter-finals of the Women's World Cup for the fourth time. "I'm very happy, I didn't think we would be able to come so far," Miyazawa told reporters. Norway, world champions in 1995, depart the World Cup before the quarter-finals for only the third time in nine campaigns. Space started opening up for Japan as Norway pressed forward and Miyazawa benefited in the 81st minute, taking a touch off Aoba Fujino's through ball and rolling it coolly into the net. "We met a very good Japan team," said Norway coach Hege Riise.

Persons: Hinata Miyazawa, Norway's Ingrid Engen, Risa Shimizu, Miyazawa, Alexandra Popp, Engen, Vilde Boe Risa, Reiten, Risa, Shimizu, Karina Saevik, Ayaka Yamashita, Hege Riise, Nick Mulvenney, Gwladys Fouche, Christian Radnedge Organizations: WELLINGTON, United, Germany, Norway, Thomson Locations: Japan, Norway, United States, Sweden, Spain, Philippines, New Zealand, Oslo

☆ Norway fail to find balance as World Cup journey ends
▼ + stars: | 2023-08-05 | by ( ) www.reuters.com time to read: +3 min

Coach Hege Riise tinkered with her side throughout the World Cup but never managed to find the lineup or tactics that would get the most out of her squad, and she faces an uncertain future after a third poor showing in four tournaments. "But (Japan) did well, we played solid defence at times but not quite good enough." Norway's defence was also shaky, with Hansen at left back and youthful central defender Mathilde Harviken targeted by opponents. If Riise, a World Cup winner with Norway in 1995, cannot mend the bridges she burned by dropping Graham Hansen, she may not have another chance to see if she can get the most out of a side that is now best known for being far less than the sum of its parts. Reporting by Philip O'Connor, additional reporting by Nick Mulvenney, editing by Christian RadnedgeOur Standards: The Thomson Reuters Trust Principles.

Persons: Risa Shimizu, Mikalsen, Amanda Perobelli WELLINGTON, Hege Riise, Riise, Julie Blakstad, Emelie Haavi, Tuva Hansen, footers, Frida Maanum, Ingrid Engen, Vilde Boe Risa, Guro Reiten, Caroline Graham Hansen, Hansen, Mathilde Harviken, Maren Mjelde, Thea Bjelde, Ada Hegerberg, Sophie Roman Haug, Graham Hansen, Philip O'Connor, Nick Mulvenney, Christian Radnedge Organizations: Soccer Football, FIFA, Wellington Regional, Switzerland, Barcelona, Norwegians, Thomson Locations: New Zealand, Japan, Norway, Wellington , New Zealand, Tuva, Philippines

Sterling traded higher after recovering knee-jerk losses following the Bank of England's decision to downshift to a quarter point rate hike on Thursday. The U.S. dollar index , which gauges the currency against a basket of six counterparts, edged 0.06% lower to 102.39 in Asia. On Thursday, it had pushed to the highest since July 7 at 102.84 at one point, but lost steam later in the day with the monthly nonfarm payrolls report looming on Friday. The dollar slipped slightly to 142.40 yen , as long-term Treasury yields - which the currency pair tends to track closely - retreated from Thursday's nearly nine-month high at 4.198% in Tokyo trading. At the same time, "unless or until what's been happening with Treasury yields reverses, there's no meaningful prospect of dollar-yen coming down here, unless we see a very dramatic deterioration in risk sentiment," he added.

Persons: Dado Ruvic, Sterling, Kristina Clifton, BoE, Ray Attrill, Attrill, Kevin Buckland, Brigid Riley, Jacqueline Wong Organizations: REUTERS, Bank of, of, U.S, Commonwealth Bank of Australia, National Australia Bank, European Central Bank, Thomson Locations: China, Asia, Thursday's, Tokyo, U.S

U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Sterling traded slightly higher after recovering knee-jerk losses following the Bank of England's decision to downshift to a quarter point rate hike on Thursday. Meanwhile, the risk-sensitive Australian dollar strengthened amid a rebound in Chinese stocks and U.S. equity futures. The U.S. dollar index , which gauges the currency against a basket of six counterparts, edged 0.07% lower to 102.38 in early Asia. However, the dollar edged higher to 142.64 yen , aided by the rise in long-term Treasury yields to a nearly nine-month high at 4.198% overnight.

Persons: Dado Ruvic, Sterling, BoE, Ray Attrill, Attrill, Hong, Kevin Buckland, Brigid Riley, Jacqueline Wong Organizations: REUTERS, Bank of, of, U.S, National Australia Bank, European Central Bank, Reserve Bank of Australia, Nasdaq, Thomson Locations: Asia, Sterling, U.S, China

☆ Maersk has ways to grow again despite headwinds
▼ + stars: | 2023-08-04 | by ( ) www.reuters.com time to read: +2 min

Container ship "Evelyn Maersk" is loaded during snowfall at a container terminal in a harbour amid the coronavirus disease (COVID-19) pandemic, in Hamburg, Germany, April 6, 2021. Arch rival and privately-owned Mediterranean Shipping Company (MSC) is deploying cash reserves on acquisitions to diversify away from container shipping. Maersk also needs to strengthen its logistics and services unit, where organic revenue fell 19%, dragged down by lower retail demand, particularly in North America. Last year's purchases of Pilot and LF Logistics helped prop up the division, but Maersk needs to invest more. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Evelyn Maersk, Fabian Bimmer, A.P, Moller, Boss Vincent Clerc, EBITDA, Clerc, Pamela Barbaglia, Pierre Briancon, Streisand Neto Organizations: REUTERS, Fabian Bimmer LONDON, Reuters, Maersk, Walmart, Nike, Unilever, CMA CGM, Mediterranean Shipping Company, LF Logistics, Twitter, Adidas, InBev, Thomson Locations: Hamburg, Germany, North America

☆ CNBC Daily Open: Investors are looking for signs of weakness
▼ + stars: | 2023-08-04 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Apple's revenue falls from a year agoApple beat Wall Street expectations for both earnings and sales in its fiscal third quarter. However, overall sales fell 1% year over year to $81.8 billion, with iPhone, iPad and Mac revenue all dropping. Instead, the MPC vowed to "ensure that Bank Rate is sufficiently restrictive for sufficiently long to return inflation to the 2% target."

Persons: BoE Organizations: Apple, CNBC, Amazon Amazon, Treasury, of, Bank of England, Monetary, MPC Locations: Shanghai, China, That's

☆ Coinbase dangerously raises the stakes
▼ + stars: | 2023-08-04 | by ( ) www.reuters.com time to read: +2 min

A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado RuvicNEW YORK, Aug 4 (Reuters Breakingviews) - Coinbase Global (COIN.O) just showed its hand in a dangerous game. Because trading activity is notoriously volatile, Coinbase boss Brian Armstrong is sensibly seeking new lines of business. After a 170% rise in the company’s share price this year, the legal limbo raises the stakes in a more worrisome way. models beauty’s new look read moreEditing by Jeffrey Goldfarb and Sharon LamOur Standards: The Thomson Reuters Trust Principles.

Persons: Dado, Brian Armstrong, Coinbase, Armstrong, Anita Ramaswamy, headwinds, Jeffrey Goldfarb, Sharon Lam Organizations: REUTERS, Reuters, Ten, U.S . Securities, Exchange Commission, California and, Twitter, Maersk, Adidas, InBev, Thomson Locations: Ten U.S, California, California and New Jersey

☆ Dollar struggles before payrolls test, Aussie rebounds
▼ + stars: | 2023-08-04 | by ( ) www.cnbc.com time to read: +3 min

Banknotes of various currencies: the Japanese Yen, the Australian dollar, the Swedish crown, and the US American dollar on a table in Hamburg, Germany, 19 February 2016. Sterling traded slightly higher after recovering knee-jerk losses following the Bank of England's decision to downshift to a quarter point rate hike on Thursday. Meanwhile, the risk-sensitive Australian dollar strengthened amid a rebound in Chinese stocks and U.S. equity futures. The U.S. dollar index , which gauges the currency against a basket of six counterparts, edged 0.07% lower to 102.38 in early Asia. However, the dollar edged higher to 142.64 yen , aided by the rise in long-term Treasury yields to a nearly nine-month high at 4.198% overnight.

Persons: Sterling, BoE, Ray Attrill, Attrill, Hong Organizations: US, Bank of, of, U.S, National Australia Bank, European Central Bank, Reserve Bank of Australia, Nasdaq Locations: Swedish, Hamburg, Germany, Asia, Sterling, U.S, China

☆ Wall St shares pare losses after choppy trading as yields spike
▼ + stars: | 2023-08-03 | by ( Lawrence Delevingne | Thomson Reuters | Delevingne Works Primarily On Enterprise Stories Related To Finance. He Joined Reuters In | ) www.reuters.com time to read: +4 min

Wall Street investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. U.S. long-term Treasury yields hit nine-month highs on Thursday after employment and other economic data pointed to easing inflation, maintaining their high levels in the afternoon. EURO SHARES DOWNEuropean shares (.STOXX) slipped 0.6%, the third straight day of losses, bruised by disappointing earnings reports and elevated U.S. bond yields. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.2%, extending losses after a drop of 2.3% a day earlier. Spot gold ticked up 0.1% to $1,934 an ounce, held in check by a robust dollar and elevated bond yields.

Persons: Andrew Kelly, BoE, Gennadiy Goldberg, Goldberg, Sterling, Stuart Cole, Morgan Stanley, Brent, Lawrence Delevingne, Tom Wilson, Stella Qiu, Jonathan Oatis, Will Dunham, Alexander Smith Organizations: Dow Jones, New York Stock Exchange, REUTERS, Wall Street, Nasdaq, TD Securities, Reuters Global, . Labor Department, FTSE, Bank of England, Equiti, Thomson Locations: Manhattan , New York City, U.S, Asia, Pacific, Japan, China, Saudi, Boston, London, Sydney

☆ NatWest cuts forecast peak for BoE rates to 5.5% from 6%
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: 1 min

Signage at a branch of NatWest Bank pictured in central London, May 21, 2008. REUTERS/Luke MacGregor/File PhotoLONDON, Aug 3 (Reuters) - NatWest Markets cut its forecast for the peak in Bank of England interest rates to 5.5% after the BoE's announcement of a latest rate hike and new guidance on Thursday, down from 6% it previously forecast. "We are revising our Bank Rate forecast and now look for just one more 25bp hike to 5.5% in September," NatWest Markets' chief UK economist, Ross Walker, wrote in a note to clients. "The apparent rowing-back in the MPC's policy-tightening guidance leaves us comfortable maintaining our negative bias on sterling," NatWest added. Reporting by David Milliken Editing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

Persons: Luke MacGregor, Ross Walker, David Milliken, William Schomberg Organizations: NatWest Bank, REUTERS, NatWest, Bank of, NatWest Markets, Thomson Locations: London, Bank, Bank of England

European shares (.STOXX) slipped 0.6%, bruised by disappointing earnings reports and elevated U.S. bond yields, on course for their third straight day of losses. Sterling extended losses after the BoE decision, falling as much as 0.7% to its lowest since June 30. The BoE decision was closely watched for clues on how central banks globally will balance taming inflation and maintaining growth. U.S. 10-year yields hit a new nine-month peak of 4.17%, while 30-year yields rose to a fresh nine-month top. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.4%, extending losses after a drop of 2.3% a day earlier.

Persons: Sterling, BoE, Stuart Cole, Morgan Stanley, Tom Wilson, Stella Qiu, Mark Potter, Bernadette Baum Organizations: REUTERS, Staff, Sterling, LONDON, Bank of England, FTSE, Equiti, Nasdaq, Treasury, U.S, AMAZON Investors, Apple, Thomson Locations: Frankfurt, Germany, Asia, Pacific, Japan, China, London, Sydney

REUTERS/Dado Ruvic/IllustrationLONDON, Aug 3 (Reuters) - The dollar touched a four-week peak against major peers on Thursday after upbeat labour market data a day earlier, while sterling remained lower after the Bank of England downshifted to a smaller 25 basis point hike. The dollar index , which measures the currency against six major peers, rose as high as 102.84, its highest level in four weeks. Earlier, the currency fell to a four-week low of 143.89 per dollar. The New Zealand dollar similarly earlier slid to its lowest since end-June at $0.6063, having tumbled more than 1% on Wednesday. "The U.S. dollar actually strengthened against most other currencies (and) there were risk-aversion trades across all the asset classes."

Persons: Dado Ruvic, Lefteris Farmakis, nonfarm, Fitch, Sterling meanwhile, BOE, John Leiper, Tina Teng, Samuel Indyk, Rae Wee, Shri Navaratnam, Nick Macfie, Andrew Heavens, Giles Elgood Organizations: REUTERS, Bank of England, U.S . Treasury, Treasury, Barclays, Titan Asset Management, Bank of Japan, New Zealand, CMC Markets, U.S, Thomson Locations: U.S, Asia, Beijing

Economists polled by Reuters last week forecast BoE rates would peak at 5.75% later this year. The BoE forecast inflation would fall to 4.9% by the end of this year - a faster decline than it had predicted in May. Wage rises had been a bigger driver of high inflation than companies' profit margins, the BoE said. The BoE forecast housing investment would fall 5.75% this year and 6.25% in 2024. (This story has been corrected to clarify that the unemployment rate forecast is for late 2025, not late 2024, in paragraph 17)Our Standards: The Thomson Reuters Trust Principles.

Persons: Hollie Adams, BoE, Andrew Bailey, Catherine Mann, Jonathan Haskel, Swati Dhingra, Rishi Sunak Organizations: Bank of England, City of, REUTERS, U.S . Federal Reserve, European Central Bank, Reuters, MPC, Markets, Thomson Locations: City, City of London, Britain

REUTERS/Dado Ruvic/IllustrationLONDON, Aug 3 (Reuters) - The dollar scaled a four-week peak against major peers on Thursday after upbeat labour market data a day earlier, while sterling edged lower ahead of an expected rate hike from the Bank of England. "Rate differentials continue to move in favour of the dollar as U.S. rates have been firmer than European rates," Christensen added. Against a stronger dollar, sterling fell 0.1% to $1.27. "An outside bet of a 50-basis-point hike would be a surprise and would lead to a stronger pound," Christensen added. "The U.S. dollar actually strengthened against most other currencies (and) there were risk-aversion trades across all the asset classes."

Persons: Dado Ruvic, Niels Christensen, Christensen, nonfarm, Fitch, BOE, Nordea's Christensen, Tina Teng, Samuel Indyk, Rae Wee, Shri Navaratnam, Nick Macfie Organizations: REUTERS, Bank of England, U.S . Treasury, Treasury, Bank of Japan, New Zealand, CMC Markets, U.S, Thomson Locations: U.S, Asia, Beijing

European shares (.STOXX) slipped 1.1% after falling on Wednesday to two-week lows as rating agency Fitch cut the U.S. government's credit rating. UK shares (.FTSE) fell 1.3%, with the Bank of England (BoE) expected to raise interest rates later in the day. Pressuring stocks were a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data and the announced refunding of the U.S. government's maturing debt. U.S. 10-year yields hit a new nine-month peak of 4.17%, while 30-year yields rose to a fresh nine-month top. The risk, investors said, was that a repeat of June's surprise half-point increase could fuel bets that major central banks are not done tightening yet.

Persons: Issei Kato, Fitch, BoE, Jonathan Petersen, Morgan Stanley, Sterling, Tom Wilson, Stella Qiu, Kim Coghill, Mark Potter Organizations: REUTERS, Apple, LONDON, Bank of England, Nasdaq, Treasury, U.S, Capital Economics, APPLE, Thomson Locations: Tokyo, Japan, Asia, SYDNEY, Pacific, China, London, Sydney

☆ Asian shares hesitant after Wall Street sell-off, dollar buoyant
▼ + stars: | 2023-08-03 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

Both S&P 500 futures and Nasdaq futures added 0.2%, following a heavy wave of selling on Wall Street overnight. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slipped 0.2%, having also suffered a colossal drop of 2.3% just a day earlier. U.S. 10-year yields hovered at 4.0856% in Asia, just a touch below a nine-month top of 4.1260% hit overnight. The risk-sensitive Australia dollar snapped a key support level to hover at $0.6532, just a touch above its 2023 low of $0.6459. Brent crude futures were up 0.2% at $83.33 per barrel and U.S. West Texas Intermediate crude futures rose 0.1% to $79.6.

Persons: Issei Kato, Fitch, Matt Simpson, nonfarm, Stella Qiu, Jacqueline Wong Organizations: REUTERS, Asia, Apple, Bank of, Nasdaq, Japan's Nikkei, Bank of Japan, Index, Inc, U.S, Bank of England, Brent, . West Texas, Thomson Locations: Tokyo, Japan, SYDNEY, Asia, Pacific, Brisbane, U.S

☆ Morning Bid: Time for tech
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +3 min

The American flag flies over the U.S. Treasury building in Washington, U.S., January 20, 2023. U.S. Treasury yields and the dollar are clinging to nine-month peaks, while the VIX is headed for its biggest week-on-week gain since March. This will shift investors' focus to the use of artificial intelligence to augment Apple's growth. Policy makers are attempting a balancing act; trying to fight inflation without fanning recession risk. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jim Bourg, Karin Strohecker, BoE, Thomas Barkin, Christina Fincher Organizations: U.S . Treasury, REUTERS, Apple, U.S, Treasury, Nasdaq, Services, Bank of England, Moderna, Hasbro, Labor Department, Commerce Department, PMI, Federal Reserve Bank of Richmond, Graphics Reuters, Reuters, Thomson Locations: Washington , U.S, U.S, Europe

☆ Robinhood swaps meme-green tights for duller look
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +2 min

Robinhood logo is seen on a smartphone in front of a displayed stock graph in this illustration taken, July 2, 2021. REUTERS/Dado Ruvic/NEW YORK, Aug 3 (Reuters Breakingviews) - Robinhood Markets (HOOD.O) is looking more grown-up - and more boring. The problem: Users are still fleeing, and nearly half of revenue comes from interest that is destined to fade. Robinhood warned last quarter that a 100 basis-point drop in interest rates would lead to a hit equivalent to an 11% fall in revenue. When the Federal Reserve eventually turns to cutting rates, Robinhood will need more users to fill that hole.

Persons: Dado Ruvic, Vlad Tenev, ” That’s, Robinhood, Ben Winck, Jonathan Guilford, Sharon Lam Organizations: REUTERS, Reuters, Stock, Federal Reserve, Twitter, Adidas, InBev, Thomson

☆ Big central banks hike again with end of tightening in sight
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +5 min

LONDON, Aug 3 (Reuters) - Major central banks are tentatively eyeing the end of aggressive interest rate hikes as price pressures finally show signs of abating. So far, nine developed economies have raised rates by a combined 3,865 basis points (bps) in this cycle. This may have marked the end of a 20-month hiking cycle, with economists polled by Reuters expecting the central bank to stay put for the rest of 2023. Canada's inflation rate fell to 2.8% in June. Reuters Graphics10) JAPANThe Bank of Japan, the world's most dovish major central bank, kept its interest rate target at -0.1% in July, but shook markets by making its yield curve control policy more flexible.

Persons: Jerome Powell, BoE, Riksbank, Nell Mackenzie, Alun John, Naomi Rovnick, Harry Robertson, Chiara Elisei, Vincent Flasseur, Sumanta Sen, Pasit, Tomasz Janowski, Toby Chopra Organizations: UNITED, Federal Reserve, ZEALAND, Reserve Bank of New, Reuters, BRITAIN, Bank of England, bps, Bank of Canada, BoC, European Central Bank, ECB, Reserve Bank of Australia, Norges Bank, Swiss, Bank of Japan, Thomson Locations: Japan, Reserve Bank of New Zealand, NORWAY, SWEDEN, SWITZERLAND Swiss, JAPAN

☆ Morning Bid: Markets brace for BOE as China PMI cheers
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +3 min

The BOE is leaning toward a 25 basis point hike after the inflation gods took some pity on the UK last month. Investors and economists will be sure to inspect the BOE's growth and inflation forecasts for indications of just how sticky the central bank thinks inflation has become. Not to be overshadowed by monetary policy, earnings reports roar back into focus on Thursday with Apple (AAPL.O) at the forefront. China kicks off a long line of PMI releases today with better-than-expected services activity, giving markets a bit of good news after disappointing data on Monday. In Japan, the stock market continued to feel the drag from U.S. chip firms on Thursday morning, with the Nikkei (.N225) seeing broad-based losses.

Persons: Hollie Adams, Brigid Riley, BOE, Jerome Powell isn't, hasn't, Stryker, Fed's Barkin, Jacqueline Wong Organizations: Bank of England, City of, REUTERS, Bank of, CPI, Reuters Graphics, ECB, Apple, Moderna, PMI, HK, Nikkei, Royce, Infineon, Adidas AG, BMW, Fed's, Thomson Locations: City, City of London, Britain, United States, China, Japan, U.S, Expedia, France, Italy, Sweden, Spain, Germany, Euro

☆ UK's FTSE 100 opens lower ahead of BoE decision; LSEG falls
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +1 min

The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File PhotoSummaryCompanies FTSE 100 down 0.8%, FTSE 250 off 0.3%Aug 3 (Reuters) - UK's FTSE 100 opened lower on Thursday, with shares of London Stock Exchange Group weighing on the index, while investors awaited the Bank of England's verdict on monetary policy tightening later in the day. By 0710 GMT, the blue-chip FTSE 100 (.FTSE) fell 0.8%, hovering near a two-week low hit on Wednesday, while the more domestically-focussed FTSE 250 midcap index (.FTMC) lost 0.3%. London Stock Exchange Group (LSEG.L) lost 3.9% after its first-half profit before tax fell 17.6%. Also weighing was BT Group (BT.L), which fell 5.1% as shares of the telecom firm traded ex-dividend.

Persons: Toby Melville, Smith, SN.L, BoE, Shashwat Chauhan, Varun Organizations: London Stock Exchange Group, City of, REUTERS, London Stock Exchange, Bank of, BT Group, Thomson Locations: City, City of London, Britain, Bengaluru

☆ BoE’s inflation firefighting will outlast peers
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +2 min

The Bank of England on Thursday raised UK interest rates by a quarter of a percentage point to a 15-year peak of 5.25%. Governor Andrew Bailey and his colleagues also vowed monetary policy would remain “sufficiently restrictive for sufficiently long” to bring inflation down to the BoE’s 2% target. As for the BoE, traders are betting that rates will hit 5.5% in September and stay elevated for the whole of next year. Despite an early start, Bailey’s fight against stubborn inflation is likely to drag on for longer. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Andrew Bailey, BoE, Bailey, Bailey’s, Francesco Guerrera, Lisa Jucca, Oliver Taslic Organizations: Reuters, Bank of England, U.S . Federal Reserve, European Central Bank ., ECB, Twitter, Thomson

Sterling initially dropped, reflecting disappointment after traders had priced in a 30% chance of another 50 bp hike. Longer-term gilt yields, more responsive to investors' perceptions about the economic growth trajectory, rose by the most in a month. Governor of the Bank of England Andrew Bailey attends a press conference for the Monetary Policy Report August 2023, at the Bank of England in London, Britain, August 3, 2023. Two-year gilt yields have risen by more than 120 basis points this year, more than double the increase of their U.S. equivalent. On Thursday, two-year gilt yields were down 5 bps in late trade, while those on 30-year debt rose 10 bps, the most in a month, to 4.66%.

Persons: BoE, Andy Burgess, Andrew Bailey, Sterling, we've, Bank of England Andrew Bailey, Alastair Grant, Jeremy Hunt, Carl Shepherd, they'll, juicier, Peter Goves, Kirsten Donovan Organizations: Bank, Bank of England, Monetary, REUTERS, Conservative, Newton Investment Management, Swiss, MFS Investment Management, Reuters Graphics, Thomson Locations: AMSTERDAM, LGIM, London, Britain, U.S

☆ VIEW Bank of England raises rates for a 14th time
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +7 min

The BoE raised interest rates by 25 basis points to 5.25% and said high inflation meant it was unlikely to stop raising rates any time soon. However, with Thursday's decision, traders began to price in a lower peak in UK rates. MONEY MARKETS: Interest-rate derivatives showed traders believe UK rates will peak around 5.67% by March, compared with an expected peak of 5.73% in the run-up to the decision. Rising interest rates means higher borrowing costs, which will lead to larger monthly mortgage payments for many homeowners." The Bank of England remains committed to bringing inflation down, unfortunately raising interest rates is one of the only tools the Bank can use to sap demand out of the economy."

Persons: BoE, Sterling, VIVEK PAUL, we’ll, STUART COLE, JEREMY BATSTONE, CARR, RAYMOND JAMES, MARCUS BROOKES, ” SEEMA SHAH, Rishi Sunak, GILES COGHLAN, THOMAS PUGH, JOHN LEIPER, Amanda Cooper, Samuel Indyk Organizations: Bank of England, FTSE, BLACKROCK, LONDON, TOM HOPKINS, Bank of, RSM, Bank, EMEA, Thomson Locations: LONDON, EUROPEAN, U.S

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