The macro backdrop looks set to be very different to both the post-2008 and pre-2008 eras.
by John Stepek
Bloomberg.com
A brief and depressing romp
As expected, the Bank of England has cut the UK’s key interest rate to 4.75%. The decision was almost unanimous — there was one hold-out, with Catherine Mann, ever the inflation hawk, opting for no cut.
The accompanying notes show that the Bank now expects inflation to peak at a higher rate than it otherwise would have, as a result of the budget.
But what’s probably more important is what comes out at the press conference, which is warming up even as today’s letter goes to press. Keep an eye on my colleagues over at the Markets Today blog for more as it comes through.