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Bank of England officials held interest rates steady in a narrow vote, signaling a potential December cut dependent on inflation and employment data. Meanwhile, US consumer sentiment has plummeted due to the government shutdown and high prices, exacerbating anxieties about a fragile labor market. (Bloomberg) --Bank of England officials held interest rates steady this week in a narrow vote while keeping the door open to a December cut that will hinge on inflation and employment data as well as the government’s autumn budget.The decision marked a break from the quarterly pace of easing the BOE has maintained since August 2024. While the choice to stand pat was anticipated by markets, the BOE altered its guidance to state that rates are “likely to continue on a gradual downward path.”In the US, where the ongoing government shutdown has delayed official economic data, private-sector surveys continue to show a fragile labor market that is fueling an increasing amount of consumer anxiety.Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:World BloombergIn addition to the UK, Norway, Sweden, Australia, Armenia, Madagascar, Georgia, Brazil, Czech Republic and Malaysia held interest rates steady. Central bankers in Poland lowered rates for the fifth time since May, while Mexico also cut.Live EventsEurope BloombergThe Bank of England held interest rates at 4% in a tight vote that laid the groundwork for a December cut. Five members of the Monetary Policy Committee voted to leave policy unchanged, with Governor Andrew Bailey swinging the decision, while four called for a quarter-point cut to 3.75%. BloombergThe BOE used its regular business survey to warn that UK Chancellor of the Exchequer Rachel Reeves will unveil her budget against a grim backdrop of weak business investment, rising unemployment and slowing growth. BloombergThe European Union is privately warning that there’s little it can do in the near term to compel China to ease export controls on critical rare earths, a move that’s caused major disruptions for Europe’s industry. Beijing has been throttling shipments of rare earth magnets that are used in everything from electric vehicle batteries to defense manufacturing, requiring companies to obtain import permits. BloombergLatvia will fight for a seat on the European Central Bank’s Executive Board, bidding to become the first eastern European country to join the institution’s top leadership. Latvia’s openness to fill any seat on the ECB’s board may help it find support among euro-area governments as they square their own ambitions with broader strategies to allocate these highly sought-after jobs.US BloombergConsumer sentiment tumbled to near the lowest on record as the government shutdown weighed on the economic outlook and high prices soured views about personal finances. A measure of current economic conditions slumped 6.3 points to a record low of 52.3 as anxiety mounted about the impact from the government shutdown. BloombergThe surprising resilience of the US economy this year is masking underlying weakness among low- and middle-income households, as higher-income Americans continue to drive growth. This dichotomy between the haves and have-nots isn’t new, but the economic strain is now extending to the middle class, creating an even starker divide that some economists say makes the economy more susceptible to a downturn. BloombergUS employers announced the most job cuts for any October in more than two decades as artificial intelligence reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray & Christmas Inc. BloombergThe share of consumers in the subprime credit risk category has reached levels not seen since 2019, a sign that a growing number of borrowers are in poor financial health.Asia BloombergSouth Korea’s consumer inflation quickened in October as a weaker won lifted energy and food costs, reinforcing the case for the central bank to extend the pause in its monetary easing cycle as it seeks to cool a housing market rally. BloombergChina’s exports unexpectedly contracted in October as global demand failed to offset the deepening slump in shipments to the US, dealing a blow to an economy already slowing amid sluggish consumer spending and investment at home. BloombergChina’s central bank made a small government bond purchase in October, its first such operation this year, as it revived another tool to support the economy.Emerging Markets BloombergChile’s economic activity bounced back in September driven by gains in mining and services, as the central bank bides its time to determine when it will deliver another interest rate cut. The Imacec index, a proxy for gross domestic product, rose 0.5% from August, when a temporary shutdown at a major mine pulled activity down 0.7%. BloombergBrazil’s central bank held its key interest rate unchanged at a near two-decade high and subtly expressed confidence that its tight policy will tame inflation it still sees running above target well into 2027. Central bankers reiterated monetary policy should stay cautious given heightened uncertainty.Add as a Reliable and Trusted News Source Add Now! Read More News onBank of England interest ratesBOE monetary policyUK interest rate cut December 2024US government shutdown impactglobal economic outlookcentral banks interest ratesBank of EnglandMonetary Policy 20 cities. Countless breakthroughs. Secure your spot at the ET Make in India SME Regional Summit.....moreless Read More News onBank of England interest ratesBOE monetary policyUK interest rate cut December 2024US government shutdown impactglobal economic outlookcentral banks interest ratesBank of EnglandMonetary Policy20 cities. Countless breakthroughs. Secure your spot at the ET Make in India SME Regional Summit.....moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
