Dear Reader,

Today's overview of economic news and market action:

• • Mixed mood on markets yesterday …
  • A sharp decline in UK CPI saw futures move to price-in more rate cuts in the UIK next year …
  • This sparked a decline in Gilt yields and put sterling on the back-foot …
  • This morning, EUR/GBP opens near the midpoint of 86-87p …
  • GBP/USD is in the lower half of $1.26-1.27 …
  • EUR/USD opens around the midpoint of $1.09-1.10 …
  • A number of US data releases today, but they are unlikely to impact on markets …

BoE holds rates at 5.25%, in no mood to ease policy

The December meeting of the Bank of England’s Monetary Policy Committee (MPC) saw the central bank keep its key interest rate unchanged at 5.25%.

ECB holds the line on tight policy as pressure builds for rate cuts

The December meeting of the ECB’s Governing Council saw the Central Bank maintain its key deposit rate at 4%, which was in line with expectations.

Supply maintains momentum, prices recover after weak start

The main focus of the Irish residential property market over the last number of years has been supply, or more specifically the lack of adequate supply.

World economy has lost momentum during 2023. Even the US economy may be starting to slow after a strong performance year-to-date. Subdued growth expected again in 2024.

As widely expected, the US Federal Reserve Open Market Committee left its key interest rates on hold at the conclusion of its two-day meeting last night.