Dear Reader,

Today's overview of economic news and market action:

• • Rather downbeat mood on markets last week …
  • Fed left interest rates unchanged last week, as expected …
  • Surprisingly, the BoE also left interest rates on hold … 
  • BoE decision to hold and lower than expected CPI weighed on sterling …
  • Sees EUR/GBP open this morning up at 87p … 
  • GBP/USD is down in the bottom half of $1.22-1.23 … 
  • EUR/USD remains between $1.06-1.07 …
  • This week, EZ flash HICP (Sep) and US core-PCE (Aug) inflation are due …

The Real Risk Takers

The latest quarterly update from the OECD on the outlook for the global economy was published in the past week. 

BoE holds rates at 5.25% in finely balanced decision

After fourteen consecutive rate hikes, stretching back to December 2021, yesterday’s meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank leave rates unchanged at 5.25%.

ECB Depo rate hits 4%, likely to be the peak

The September meeting of the ECB’s Governing Council saw the Central Bank raise rates by a further 25bps, pushing the key deposit rate up to 4.00%.

Fed leaves rates unchanged in a hawkish hold

As had been well signalled, the US Fed left official interest rates unchanged at the conclusion of its policy meeting.Thus, the target range for the funds rate remains at 5.25-5.50%.