S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
UOB strategists highlight that the Bank of England (BoE) kept its policy rate at 3.75%, with Governor Bailey stressing no move toward a hike despite US-Iran conflict risks. The BoE reiterated it stands ready to act if inflation stays elevated, but softer price pressures led markets to scale back September hike expectations, even as a three-member minority backed a 25 bps increase.
Dovish stance tempers rate hike bets
“The Bank of England (BoE) kept its policy rate unchanged at 3.75%, with Governor Andrew Bailey stating that the committee is not moving closer to a rate hike.”
“While the Monetary Policy Committee remains attentive to the inflationary risks stemming from the US-Iran conflict and the possibility of a prolonged escalation, it noted that price pressures have been softer than expected.”
“The BoE maintained its guidance that it “stands ready to act” should inflation remain persistently elevated.”
“Following the decision, traders reduced expectations of a rate increase at the September meeting.”
“Catherine Mann joined Megan Greene and Chief Economist Huw Pill in voting for a 25bps rate hike, while the remaining six members, including Bailey, voted to keep rates unchanged, citing softer inflationary pressures.”
