Yellow Brick Road’s Post

“Not yet time”⌚ Held at 5.25% stating things are moving in the right direction. 8 to 1 majority holding as is with the 1 member wanting to lower the rate. 🧐 Inflation is 3.4% still not reaching the giddy lows of the planned 2%.👇 Something to note is this is the first time no member has voted to raise the rate. 🤔 The news wasn't unexpected and good to see them saying we are moving in the right direction. The stability is good news for the money markets and let’s see if this will have an effect on swap rates and cost of borrowing. 👈

Our latest #InsightWeekly covers the #US interest rate cut, expectations for UK #interest rates, and unchanged headline #inflation. Find out more and discover why it's been a good week for #oil and a bad week for #bonds: https://ow.ly/B8SG50Tv2te #MarketUpdate

UK: Market Wire "EURUSD was a beneficiary of the jumbo 0.5% US interest rate cut last week. Investors have questions over the formation of a French government - How long will it last and will it tackle the budget deficit?" To read the full report from our Senior Market Strategist, Trevor Charsley and sign up for our weekly updates please click here: https://lnkd.in/dzs6V5CQ #fxmarkets #marketanalysis #internationalpayments #fxhedging #inflation #payments #uk

Interest Rates Reduced front 19.5% to 17.5% .

INTEREST RATES EXPECTATIONS FOR G8FX Rate cuts by year-end 🔹Fed: 47.5 bps (90% chance of no change at the next meeting) 🔹ECB: 47.7 bps (68% chance of no change at the next meeting) 🔹BoE: 47.6 bps (50% chance of rate cut at the next meeting) 🔹BoC: 54.4 bps (71% chance of rate cut at the next meeting) 🔹RBA: 6.7 bps (88% chance of no change at the next meeting) 🔹RBNZ: 36.3 bps (95% chance of no change at the next meeting) 🔹SNB: 20.1 bps (50% chance of no change at the next meeting) Rate hikes by year-end 🔹BoJ: 18.2 bps (53% chance of rate hike at the next meeting)

Interest rates and bond prices have an inverse relationship - when interest rates fall, bond prices go up. With the Federal Reserve expected to lower rates this September, it's a good time to review your portfolio to see how to take advantage of the expected change.

Interest rates on the 10 year treasury changed from 4.7% in late April to 4.25% this past week.

Unlike traditional fixed-rate bonds, whose prices typically decline as interest rates rise, floating rate bonds adjust their interest payments in line with changes in interest rates. https://buff.ly/3QSAxZB

The scheduled dates for the interest rate announcements for 2025 are as follows: Wednesday, January 29 Wednesday, March 12 Wednesday, April 16 Wednesday, June 4 Wednesday, July 30 Wednesday, September 17 Wednesday, October 29 Wednesday, December 10

Duration measures the sensitivity of a bond to changes in interest rates. Generally, when interest rates rise, the higher a bond’s duration is, and the more its price will fall. Time to maturity and a bond’s coupon rate are two factors that affect a bond’s duration.