Stocks Rise as Swiss Move Fuels Rate-Cut Momentum: Markets Wrap
What is the expected policy decision from the Bank of England?
The Bank of England's Monetary Policy Committee (MPC) is expected to maintain Bank Rate at 5.25%. The decision will be announced on Thursday, with analysts divided over whether to expect a hike to interest rates of 50 or 75 basis points. The MPC sets monetary policy to meet the 2% inflation target and to sustain growth and employment.
How did European stocks respond to the Swiss rate cut?
European stocks rose after the Swiss National Bank delivered an interest rate cut. The Stoxx 600 index increased by 0.4%, with technology, insurance, and real estate sectors leading the gains. US futures contracts also strengthened, signaling fresh record highs when Wall Street reopens after a public holiday.
What prompted the Swiss National Bank to cut interest rates again?
The Swiss National Bank cut interest rates again due to a drop in "underlying inflationary pressure" despite an uptick in some costs like rents, tourism services, and oil products. This move aimed to ensure inflation remains in the targeted range and support economic growth.