Market expectations for rate cuts sooner rather than later have been dashed but some economies remain in danger of recession.
Bank of England governor Andrew Bailey, like other central bank heads, has been trying to see a way through a recent inflation crisis.
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The UK, eurozone and US inflation stories have diverged, which means each economy is now fighting a distinct battle with prices rises, which could require very different weapons.
Peter Martin, Crawford School of Public Policy, Australian National University
Australian financial markets are now pointing to a close to zero chance of further rate rises – with a fair chance of a rate cut next year. That’s thanks to the latest news from the US and UK.
Central banks balance different factors when raising rates – or not – including inflation and the labour market. But what other countries are doing also has an effect.
Bank of England Governor Andrew Bailey.
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