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BBCNEWS World Business Report July 7, 2024



lets now get down to business. the biggest interest rate rise since 1989. that s what we are awaiting from the bank of england in just a few hours time as it battles to control soaring prices. the bank is widely expected to raise its benchmark rate from 2.25% to 3% pushing up the cost of mortgages, credit cards and loans. it comes as america s central bank the us federal reserve raised its main rate by three quarters of a percentage point and warned borrowing costs will have to go higher than many are expecting. michelle fleury has this from new york. this is the fourth time in a row that the us central bank has raised interest rates so aggressively, with another hike possible in december. the rapid pace of increases is in response to prices that have been rising at their fastest pace in four decades. now, as the race to beat inflation continues, the question for everyone is, will mr powell and his colleagues really keep up this pace? in its statement, for th ....

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BBCNEWS World Business Report June 4, 2024 05:32:00

At their fastest pace in four decades. now, as the race to beat inflation continues, the question for everyone is, will mr powell and his colleagues really keep up this pace? in its statement, for the first time in this tightening cycle, the fed did explicitly acknowledge that a slower pace will be warranted at some point, since it takes a long time for the effect of a rate hike to show up in economic data. us financial markets leapt on this news stock prices surged before falling back to earth following comments by mr powell. during his press conference, the fed chair warned investors not to get ahead of themselves, suggesting that it was too soon to hit a pause on its rate hikes. let me say this. it s. it is very premature to be thinking about pausing. so people, when they hear lags, they think about about a pause. it s very premature, in my view, to think about or be talking about pausing our rate hike. we have. ....

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BBCNEWS World Business Report June 4, 2024 05:38:00

Bank of england will not want to do anything that could really rock the boat again but it won t be able to, we know that 0.75% is pretty much baked in. what will be interesting is what the bank of england are going to say going forward because let s not forget they are flying blind here. they were supposed to have had that fiscal statement out from the government before this meeting. that has not been the case now because the fiscal statement isn t coming in until the 17th of november, so they will have to not have those details looking forward to what is happening going forward. inflation here in the uk is still over 10% and the uk is expected to head into a recession, as well, so it is going to be a difficult time in the uk. ~ ., , a, a, ., the uk. we are acutely aware of that. the uk. we are acutely aware of that- good the uk. we are acutely aware of that. good to the uk. we are acutely aware of that. good to talk the uk. we are acutely aware of that. good to talk to the uk. ....

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BBCNEWS World Business Report June 4, 2024 05:35:00

This sensation in the markets that they were expecting the federal reserve to really actually slow the pace of rate hikes going forward but not just at one or two meetings. really change the pace going forward. because of that we have seen the stock markets rally. especially the dow jones, which was up 14% across october. the us dollar has come lower. now, the statement suggested that maybe the fed was coming towards the end of that hiking cycle, butjerome powell was really quite sure in his words that there is still a lot of work to do and let s not forget inflation in the us, it is still at 8%, still high. data from thejobs is still at 8%, still high. data from the jobs market has still been really quite strong, suggesting the labour market is quite resilient. we have seen some cooling off in the housing market, but so far that has ....

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