Charting the Global Economy: Fed, BOE Leave Rates Unchanged

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Charting the Global Economy: Fed, BOE Leave Rates Unchanged
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(Bloomberg) -- The Federal Reserve and Bank of England both left borrowing costs unchanged as they near the end of their respective tightening cycles.Most...

Yahoo News is better in the app -- The Federal Reserve and Bank of England both left borrowing costs unchanged as they near the end of their respective tightening cycles.While the Fed’s decision to pause was unanimous, several UK policymakers voted in favor of another another quarter-point increase. Both central banks left open the option to hike again, but a soft US jobs report at the end of the week reinforces investors’ view that the Fed’s campaign is done.

Fed Chair Jerome Powell hinted the central bank may now be finished with the most aggressive tightening cycle in four decades after it held off on raising interest rates for a second consecutive policy meeting. German output shrank in the third quarter — raising the risk that Europe’s largest economy is headed for a recession. The data underscore Germany’s struggle to bounce back from an energy-induced downturn last winter that was followed by two quarters of stagnation or minimal growth.The Bank of Japan has tightly overseen the government debt market since it introduced yield-curve control in September 2016, with its ownership of outstanding bonds surpassing 50%.

Mexico’s economy accelerated more than forecast in the third quarter, buoyed by flourishing trade with the US and solid spending by Mexican consumers. Growth in Latin America’s second-largest economy is also due in part to extra spending on the part of the government, which has expanded programs and rushed to finish major infrastructure projects before President Andres Manuel Lopez Obrador’s term ends in late 2024.

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