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Markets
European bond yields ease after brutal sell-off as US mortgages hit 7%
European government bond yields eased on Friday morning, pulling back from a brutal sell-off earlier in the week, even as US Treasury yields pushed to fresh multi-decade highs, and mortgage rates in America hit 7%, their highest level since Donald Trump returned to office.
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Economy
Bank of England holds rates at 3.75% as inflation hits five-month high
The Bank of England has kept its main interest rate at 3.75%, but three of its nine policymakers voted to raise it, exposing a divided committee as the energy shock from the Iran war pushes inflation to a five-month high of 3.1%.
Economy
Fed hikes rates for the first time since 2023 in unanimous vote
The Federal Reserve has raised its benchmark interest rate by a quarter point to a range of 3.75% to 4%, its first increase since July 2023, in a unanimous 12-0 vote that puts Chair Kevin Warsh directly at odds with the US president who appointed him.
Economy
US inflation holds at 3.4% as monthly price rises hit fastest pace since May
US consumer prices rose 3.4% in the year to August, unchanged from July and exactly in line with expectations, but the monthly increase of 0.4% was the sharpest since May, a sign the energy shock is starting to bite four days before a Federal Reserve decision markets expect will deliver a rate hike.
Economy
An ECB rate hike is all but certain, the reasoning less so
The European Central Bank is all but certain to raise interest rates on Thursday, with investors pricing the move at near-total probability, but the decision is more awkward than the numbers suggest as inflation is being driven almost entirely by energy with underlying pressures actually easing.
