Central Banks Rates Under Microscope in Next Two Weeks
Published / Last Updated on 23/10/2023
This week we have several large US corporates reporting on earnings as well as US GDP figures. This may set the theme for the Federal Reserve’s meeting next week.
- The European Central Bank (ECB) is due to make an interest rate decision in Europe on Thursday. The current ECB rate is 4% pa (its highest since the Euro launched in 1999) when the ECB committee said it would ‘keep their options open’ meaning the decision on Thursday is uncertain.
- The Bank of Canada will also decide this week (current rates 5.0% pa) and is expected to hold rates.
- The Federal Reserve’s decision on US interest rates (currently within a range of 5.25% - 5.50% pa) is on Wednesday 1st November and forecast to hold or increased marginally by 0.1% pa.
- The Bank of England’s monetary policy committee meets the day after on 2nd November and we expect an increase from 5.25% pa to 5.50% pa next week or if not, on 14th December 2023.
Not long now we hope, we expect central bank rates to starting falling in 2024 with rates at 4.0% pa by the end of 2024. Gone are the days of low-low rates as we head back to normality (we hope) on inflation and interest rates. Normal prime mortgage rates will then hover around the 4.5% to 5.0% pa mark.