you despair quietly, inwardly. today s bank of england decision was widely seen as a tricky one, against the backdrop of recent global financial market turbulence. it follows the collapse of a trio of small banks in the us and the hurried sale of credit suisse. let s hearfrom sarah hewin from standard chartered bank: just a few days ago the expectations had been that the bank of england would in fact keep rates on hold because of the international, financial markets turmoil that we have experienced. then we had the inflation reading which came through higher than expected, so the policymakers are really having to balance the domestic inflation rates against the threat that credit growth and low growth could slip quite dramatically and be bad for the economy. the bank of england move comes less than 24 hours after the us central bank, the federal reserve, raised rates again there, despite that turmoil
startups and crypto, which has been cooled, when you re getting the easy money out of the system, that could be working in the fed s favor. okay. so, we re going to get a few hours from now a really important inflation reading? the consumer price index. this is the last big reading on inflation, one of the last big readings before the fed meets. 6% for the year over year number. if you look at this chart here, you can see clearly consumer is peaking. the overall number has been moving in the right direction. but still much higher than the 2% number the fed would like to see. so, we ll be watching very closely at 8:30 to see what this signals about the economy. i don t believe you because my kids wanted pickles last night and they were almost $7. that s just new york. i went to the grocery store, i got 10 things and everything was $10 or more. a thing of nutello. yes, your three boys will. christine romans, thank you very much. i m just talking to my friend
so we ll get a check on all of the cross currents and how it is teeing us up for the spring season with readings on weekly mortgage applications, home wilder sentiment, housing starts all coming this week. also worth noting that some home price declines have happened in major metro areas on a month to month to month basis since we did see the fed begin its tightening cycle, but since mortgage rates began rising last year i should say, but those prices are still higher than they were a year ago and that is going to be a factor in the monthly inflation reading that we ll get that will be released tomorrow and specifically how those higher prices have translated into the rental market which is such a big part of cpi. but so far, some early signs that buyers at least are back out in the market and looking to make some bids on some properties. morgan brennan, thank you very much. good to see you. a big win for the chiefs, devastating loss for the eagles. and one heck of a halftime show.
that joins us live from london. investors today will be looking ahead to a key inflation report. it may determine the size of federal reserves next interest rate hike. we expect to hear from president biden later as well. that s coming to day. consumer price index. what can we expect? yeah. so it is always a major market mover. let me give you what the market is expecting here. the market is expecting the head line inflation number to drop to 6.5% from 7.1% the last month. core inflation to drop to 5.7% from 6%. that he is quif lent to equival jump. so good news. it is worth mentioning this is the last inflation reading that we re going to get before the next federal reserve meeting on february 1st. they re figuring in a 25 point basis hike. if we get a surprise, that could
federal reserve officials in this two-day meeting that starts tomorrow and how that inflation reading is going to factor in. what do i mean by that? it s not the size of the interest rate hike that we re going to get on wednesday that markets are focused on, it s this idea of keeping rates higher for longer into 2023 and beyond. it has been widely anticipated and this could always change depending on the reading tomorrow, it s been widely anticipated that we re going to get a half of a percentage point interest rate hike on wednesday. that would be a very big increase. coming off of four jumbo sized three quarter point interest rate increases, that too represents a moderating pace in terms of tightening financial conditions. what cpi and other data points we re looking for, including more labor data points are going to signal is how long, what the trajectory is for continued rate increases into 2023 by federal reserve officials and whether to keep them there for longer.