With the first set of central bank meetings this year now in the rearview mirror, its worth taking stock of where each of the Fed, Bank of England and ECB stands in relation to one another.
With the US economy continuing to outperform, despite some softening in the labour market, relatively higher rates appear merited, albeit the incoming Fed Chair Kevin Warsh would like them lower.
This was a question put to the Bank of England’s Monetary Policy Committee (MPC) at its quarterly press conference yesterday in relation to much lower rates in the Eurozone.
Indeed, over a longer time frame, UK investment trends have even lagged the less-than-stellar Eurozone, averaging around 17% of GDP between 2009–2024, compared to 20% in the Eurozone.
