The Federal Reserve held interest rates at their current 22-year high for a second consecutive meeting today. The Federal Open Market Committee opted for another pause, keeping the federal funds rate at its current range of 5.25 and 5.5 per cent. But continued labour market tightness, surprising consumer strength and solid economic growth mean the Fed is not ruling out further rate hikes, as the central bank continues its fight against inflation. The Bank of England is also expected to opt for another pause at 5.25 per cent when its Monetary Policy Committee meets on Thursday. Investors are looking further ahead, preparing for a long period of plateauing interest rates, with the first cut anticipated in mid-2024.'

Source: Daily Mail November 01, 2023 22:27 UTC