Following USA, UK Will Also Face Interest Rate Decision Today
Meanwhile, Brazil's central bank raised its benchmark rate by 0.25 percent
After the Federal Reserve finally cut US interest rates by 0.5%, the Bank of England is also due to give its view on the prime rate today (Thursday, September 19). Financial Times sources said the United Kingdom central bank should keep the interest rate at 5 percent. The decision will come after the announcement that “the UK inflation rate remained stable at 2.2% in August.” This figure is just above the Bank of England’s target of 2%.
On September 18 (September 19 in Europe), the Federal Reserve cut US interest rates by half a point, approving a cut for the first time since 2020. As the Federal Reserve head said, “the measure approved by 11 votes out of 12, this would bring the benchmark interest rate to between 4.75 and 5%,” after the Fed began restrictive monetary policy two years ago to curb the galloping inflation. “The Committee has gained greater confidence in the trajectory of inflation, which is steadily approaching the two percent threshold,” Powell said.
Meanwhile, Brazil’s Central Bank (BC) decided to raise the Selic interest rate by 0.25%, increasing it from 10.5% to 10.75% on an annualized basis. The Monetary Policy Committee (Copom) meeting on Thursday, September 18, marked the first rate hike in two years and the first since the appointment of the current monetary policy director of the Central Bank of Brazil, Gabriel Galipolo, as the bank’s incoming president starting next year.
