The market expects the Fed to hold rates steady. The Bank of England is unlikely to raise rates due to sluggish UK growth. US employment has increased significantly, but the Fed may pause on rate hikes. The US unemployment rate remains at 3.8% and the labor market is tight.
US Fed Interest Rate Decision (Oct)
The markets are currently expecting the Federal Reserve to leave interest rates unchanged next week. This is in line with recent dovish comments from Fed officials and generally favorable economic data. However, the possibility of a December rate hike remains.
UK BoE Interest Rate Decision (Oct)
The Bank of England is scheduled to make an interest rate decision next week. The benchmark rate was left unchanged last month, ending a streak of 14 consecutive rate hikes. Economic growth in the UK has been relatively sluggish in recent months. As a result, some economists believe it’s unlikely that the Bank will raise interest rates next week.
US Nonfarm Payrolls (Oct)
In September, U.S. employment rose by the largest amount in eight months, with hiring increasing from 227k to 336k. Conversely, financial markets and many economists believe that the Fed has likely completed its rate-hiking cycle, largely due to the rise in long-term US Treasury yields to levels not seen in 16 years.
US Unemployment Rate (Oct)
The U.S. unemployment rate held steady at 3.8% in September, despite market expectations for a decline to 3.7%. While there was no significant change in the rate, the latest data on initial jobless claims showed a notable drop from 211k to 198k. This drop suggests that labor market conditions remain tight.
