A larger than anticipated cut in US interest rates and a surprise fiscal stimulus package from the People’s Bank of China (PBC) acting together with financial regulators, were the dominant themes during the month.
US
The US Federal Reserve (‘Fed’) finally cut interest rates and by a higher than expected 0.5%, as they attempted to navigate a ‘soft landing’ (i.e. avoid recession) for the US economy.
UK
The Bank of England’s decision to keep interest rates on hold, coupled with uncertainty over the UK Government’s future spending and taxation plans, served to keep both government bond yields higher and the pound stronger.
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