Wotcher, cheap money!
Something we (that's the royal "we", FYI) here at the Globblog have been expecting for some time has now come to fruition.
The Bank of England's Monetary Policy Committee today voted to reduce the Bank's repo rate by 0.25 percentage points to 4.5%.Among eleven leading central banks (per Reuters), the Bank of England now joins Sweden's Riksbank as rate cutters among the top 11, while the Bank of Japan, European Central Bank, Bank of Canada, Swiss National Bank and the Danish National Bank are all in long-term holding patterns. Only the Fed, the Reserve Bank of Australia, the Reserve Bank of New Zealand and Norges Bank (Norway) have upped rates this year. Among those rate raisers, and the Australians declined on further increases yesterday and the Kiwis anticipate their own holding pattern for the rest of this year.
In the first half of the year, output growth in the United Kingdom was subdued. Household spending and business investment growth have slowed. Although there are some signs of a pickup in consumer spending, downside risks remain in the near term.
So while the Fed is determined to keep upping the ante (as soon as next week, in fact), much of the rest of the world is just as determined to sit out the hand.