All eyes on the BoE as Federal Reserve holds rates at 22-year high

Bar for further hikes is higher

Valeria Martinez
clock • 3 min read

The Federal Reserve has held interest rates unchanged for the second successive meeting, raising hopes that the central bank's hiking cycle may have come to an end.

The move came as widely expected by the markets, leaving the central bank's rate target at 5.25%-5.5%, a 22-year high and bolstering expectations that the Bank of England will also maintain rates later today (2 November). This came despite the US economy exceeding with strong job growth and economic expansion, but the inflation rate remains above the Fed's 2% target.  In a statement on Wednesday (1 November), the Fed said the decision to hold rates had been unanimous, adding that the rate-setting committee would be prepared to adjust the stance of monetary policy "as appropriate" if r...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

While markets have begun pricing in rate cuts from key central banks in 2024, it is 'clear that higher interest rates are here to stay'.

Deep Dive: Did central banks get it right in 2023?

Review of 2023’s monetary policy decisions

Eve Maddock-Jones
clock 01 December 2023 • 5 min read
Megan Greene (pictured)  was part of a minority group of three members who voted to increase interest rates to 5.5% during the recent MPC meeting.

BoE's Greene: Monetary policy will need to be restrictive 'for an extended period'

Worried about inflation persistence

Valeria Martinez
clock 01 December 2023 • 1 min read
Daniele Antonucci, CIO at Quintet Private Bank, said he expects the ECB will hold rates during the first few months of 2024, before lowering them to 'stimulate growth around mid-year'.

Eurozone inflation drops to 2.4%

From 2.9% in October

Cristian Angeloni
clock 30 November 2023 • 1 min read