Bank of England governor says “we need to be careful not to cut too fast or by too much”, after leaving borrowing costs unchanged in 8-1 vote
- Bank of England keeps interest rates unchanged at 5%
- Federal Reserve cuts US interest rates for the first time in four years
Over in the European Union, car sales took a tumble last month as take-up of electric cars slumped.
Industry body ACEA has reported that registrations of battery-electric (BEV) cars across the EU dropped by 43.9% to 92,627 units, down from 165,204 cars in August 2023.
I will admit the Fed surprised me yesterday – I expected a light 25 bp touch on the accelerator. Instead, it was a 50 bp engine-revving pedal to the metal roar on the gas – which Powell immediately made clear was limited.
Think of it the kind of aggressively signalled overtake you might make from behind the guy oblivious to the fact he’s driving like a granny at 30-mph on a 60-mph road. The opportunity to pass him comes up, and you take it. One minute later, you won’t even remember what the colour the car in front had been.
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