Inline with our expectations and with our recommended good dividend payers showing extremely strong performance this morning of 25th July 2024, money seems to be moving into high yielding instruments as traders speculate the Bank of England (BoE) will cut interest rates.
Traders are also increasing their bets partly spurred by optimism that the US Federal Reserve is on the verge of reducing borrowing costs in America.
Money markets currently indicate a more than 50% chance that policymakers will cut rates in Britain next week, with a 92% likelihood of such a move by September. The data released today (25th July 2024) showed an unexpected 6.6% decline in consumer spending on durable goods like cars and washing machines, contrary to predictions of a 0.3% rise.
These figures solidified bets on the Federal Reserve cutting interest rates in September, which is now fully priced in.
Money markets maintained confidence in rate cuts despite official figures s ...
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