Thu Sep 19 06:41:09 UTC 2024: ## Global Markets React to Fed Rate Cut, UK Rates Expected to Stay Steady
**LONDON** – Despite a historic move by the Federal Reserve to cut interest rates for the first time in four years, UK money markets are currently predicting only a 20% chance of a similar move by the Bank of England today.
The Fed’s rate cut, aimed at bolstering the US economy in the face of slowing global growth, sent shockwaves through financial markets yesterday. However, the Bank of England is facing different economic pressures, leading analysts to believe that a rate cut is unlikely at this time.
Fed Chair Jerome Powell, in a statement last night, emphasized that the rate cut was a “mid-cycle adjustment” and not a sign of impending recession. The statement, while reassuring, failed to fully quell concerns about global economic uncertainty.
The Bank of England’s Monetary Policy Committee will meet today to discuss interest rates. The decision will be announced later this afternoon.
First Piper 