Overall Market Backdrop, December: In December, the Office for National Statistics (ONS) disclosed that the consumer price index experienced a 3.9% annual rise in November, marking a notable decline from the 4.6% in October and the 6.7% increase in September. During its December meeting, the Bank of England (BoE), with a majority of 6-3, opted […]
Overall Market Backdrop, November: On November 15th, it was announced that UK inflation fell in October by the largest single month decline since 1992 (down to 4.6% from 6.7% in September). President Xi Jinping of China visited President Biden in the U.S in an effort to normalise diplomatic relations after months of barbed words. On November […]
Overall Market Backdrop, October: On October 26th, the European Central Bank (ECB) decided to halt their series of 10 consecutive interest rate hikes, keeping rates steady at 4.0%. The Middle East accounts for just under a third of global oil production, so a prolonged conflict in the region could heighten the possibility of a significant […]
In this EBI article, we explore the reasons why long-term passive investors may prefer to hold bonds over cash in their portfolio, despite the high rates currently on offer through cash savings accounts. Click here to read more
Overall Market Backdrop, September: In September, the Bank of England opted to maintain its current interest rates, keeping them steady at 5.25%, the highest they have been in 15 years. Inflation, which measures the rate of price changes over time, declined to 6.7% for the year ending in August. Russia made an unexpected announcement on […]
Overall Market Backdrop, August: On August 3rd, the UK’s monetary policy committee (MPC) voted to take interest rates to a 15-year high, raising rates from 5% to 5.25%. Recent market fluctuations highlight Europe’s vulnerability to price surges and instability within the gas industry, whereby rising energy prices will make it even more challenging for the […]
Overall Market Backdrop, July: The Bank Of Japan increased its limit on ten-year government-bond yields from 0.5% to 1%, leading to ten-year yields reaching c.0.6%, the highest in almost ten years. On July 26th, the Federal Reserve (Fed) increased the federal funds rate by a quarter of a percentage point to the highest level in […]
Overall Market Backdrop, June On 22nd June the Bank of England (BoE) raised rates to 5%, with a surprise 0.5% increase (compared to market expectations of 0.25%). The BoE’s rate hike and associated movements in the UK gilt yield and swap curves (on which mortgages are typically priced) contributed to further increases in the price […]
Overall Market Backdrop, May There was increased media focus in the last few weeks of May as the U.S. Government approached its ‘debt ceiling’, with a lack of political consensus in Washington raising concerns over the possibility of a potential default. Notably, UK core inflation (which excludes energy and food), increased from 6.2% to 6.8% […]
Overall Market Backdrop, April Nationwide Building Society chief economist, Robert Gardner, has noted “tentative signs of a recovery” in the UK housing market, following a 0.5% rise in house prices last month (after taking into account seasonal effects). Following the debut of ChatGPT last year, tech giants Microsoft, Google, and Meta have undergone notable transformations […]