So interest rates are staying up here, and, as importantly for us, our investments and the rest of the world’s economies, in the US as well. Accentuating the positive, they haven’t gone up and consensus is that they have peaked and may well start to come down at some point this year. In an election year governments. Must, I’m sure, rue the day that they gave away control of interest-rate-setting to their central banks (the Bank of England and the Fed), as bringing them down would be an easy feel-good bribe, and blow the long-term effects. On that note, J Hunt seems to be saying that tax cuts are ‘unlikely’. He’s apparently ‘managing expectations’, which, given how much we actually need to be spending on so many things which don’t involve bombing and shooting people, is a good thing. I’d say.
Thursday at the Bank of England was much like any other day. And then…nothing happened (one for Python fans). Interest rates stayed at 5.25%, just as, in Europe, they stayed at 4%. What does it all mean?