Economist Weekly Market View
UK and Eurozone similar in many respects, except on rates
 
 

Last week’s knife-edge Bank of England (BoE) rate cut came amid ongoing uncertainty on the global and domestic front for policymakers. The caution of the BoE is notable given the current weakness of the UK economy. Comparing high-level macro data to the Eurozone suggests both economies are growing similarly at historically weak rates of about 1% per annum. Nevertheless, the ECB has been much more aggressive in its rate-cutting cycle, lowering its key deposit rate to 2% from a peak of 4%. In contrast, the BoE has lowered Bank rate gradually to 4% from 5.25%.


 
 
 
Click to listen and SUBSCRIBE to AIB's Market Talk podcast
 
 
 
 
Find Economic Analysis, Market News and More on our Website