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Affiliate Event: Lloyds – Markets Matter Conference Call
August 24, 2023 @ 9:30 am - 10:30 am
Policy Rates Continue to Rise
24th August 09:30am
Since our last call, in response to stubbornly high levels of inflation, we have seen monetary policy increases of 25bp from the US Fed, the ECB and the BoE. In the UK, highlighting the uncertainty around the future path of rates, the vote was split with 6 policy makers favouring 25bp increase, 2 favouring a 50bp increase and 1 favouring no change. While the recent increase in the US followed a pause in rate rises, with the Fed following their guidance that future policy changes would be ‘data dependent’ and deeming conditions were such that a 25bp increase was warranted.
While data readings have always been key for Central Banks, the message of data dependency does make it challenging for corporates to have a clear view on the future of monetary policy (and therefore market rates in all asset classes), especially where inflation is trending in the right direction but labour markets (in the UK and US) remain tight.
Please join us for our next call where we will reflect on both the output from these recent central Bank meetings and data signals in the period following the meetings. The panellists will discuss market reaction to both the meetings and other recent events, as well as discussing what clients may wish to consider from a risk management perspective given the level of uncertainty around future market moves.
As Corporates prepare for the end of the summer period, this call should give some insight in to some of the factors likely to impact markets and trading across the rest of the year.