Today’s focus in the financial world is on inflation and interest rates, with significant announcements expected in both the UK and the US. In the UK, economists predict that the consumer prices index rose by 2.2% in the year to August, slightly above the Bank of England’s 2% target. A weak inflation reading might prompt the BoE to cut interest rates, while a higher rate could lead to maintaining borrowing costs. In the US, the Federal Reserve is expected to announce a cut in interest rates, with speculation on whether it will be a quarter-point cut or a more substantial half-point reduction. Analysts are divided on the outcome, with some predicting a 25 basis point cut and others leaning towards a 50 basis point reduction. The Fed’s decision will be revealed at 7pm BST, followed by a press conference at 7:30pm. In the UK, the inflation report for August is set to reveal a possible rise in services inflation, driven by factors such as hotel prices. Economists expect a jump in services inflation to 5.6% in August, up from 5.2% in July. Overall, today’s announcements will provide crucial insights into the economic landscape, with implications for monetary policy decisions in both countries. Stay tuned for further updates.
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UK Inflation Report and US Interest Rate Decision Dominate Market Activity – Live Updates from the Business World
