Changing Alliances

A global shift?

Good news!

UK inflation has hit its lowest rate since 2021 at 3.4 percent.

This is below the 3.5 percent predicted in a Reuters poll and also below January’s 4 percent.

Good news, indeed.

However, the Bank of England’s Monetary Policy Committee (MPC) met yesterday and as expected they’ll hold rates at the 16-year high of 5.25 percent.

That said, if rates are lowered in future my belief is that this will be a welcome relief to the market and we’ll see a sharp rally in stock prices.

Currently, the probability of a quarter of a percent cut by June is priced around 60 percent.

But whilst it looks like inflation may be falling, prices are still high in everyday life.

It’s a good sign though, and hopefully we are past the worst.

The war in Ukraine rages on, and the US is potentially going to pull out of military spending if Trump wins (and there is a realistic possibility that he will).

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