On Wednesday, the Federal Reserve signalled US interest rates were staying higher for longer, and the mood in Europe has shifted too, with implications for Irish mortgage holders
Federal Reserve
US central bank says there has been a ‘lack of further progress’ towards 2 per cent inflation goal
Past and present policymakers should ask more searching questions about the causes and impact of the price surge
An ECB interest rate cut soon would make sense, but the Fed faces a more difficult call in the US
While base case remains reduction in borrowing costs, options market shows a 20% probability of increase
Traders drastically lowered rate cut expectations as data shows 3.5% inflation hike in March against 3.4% expectation
Move has puzzled analysts with no obvious catalyst
However, governor Andrew Bailey has said Britain’s economy is “moving in the right direction” to start cutting rates
Forecasts come as US central bank holds interest rates at 23-year high
Unexpected increase set to be scrutinised by central bank as it weighs interest rate cuts
Comments by Fed chair Jay Powell come a day after ECB signalled possible movement in June
History has warned that the last stage of returning inflation to central bank targets is often the most difficult
Underwhelming US price data dampens speculation of early cut in interest rates
Middle-ground speculation is for ECB rate cuts to begin in June
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