M&G's Leaviss: No cruise speed yet for central banks

How have they performed this summer?

clock • 4 min read

Some of the world's most important central banks have met over the past few weeks, probably before rushing for a summer holiday, but the ships they are sailing have not quite reached cruise speed yet.

The US Federal Reserve, the European Central Bank (ECB), the Bank of Japan (BoJ), and the central banks of Brazil and Mexico left rates unchanged before the summer break - all because growth and inflation are far from running at full traction.  Only the Bank of England and the Reserve Bank of India lifted interest rates, although neither country can claim that the hikes were due to booming economic activity. In the UK, the currency plunge following the Brexit vote has made imports more expensive, raising inflation, while in India, prices have increased amid rising food costs and expen...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Uncertainty of Federal Reserve's rate path after Trump unleashes tariff chaos
US

Uncertainty of Federal Reserve's rate path after Trump unleashes tariff chaos

Same week as recession expectations rose

Eve Maddock-Jones
clock 03 April 2025 • 3 min read
US swings out of favour at fastest rate since 2010
US

US swings out of favour at fastest rate since 2010

Bonds hit by ‘biggest drop in sentiment’

Sorin Dojan
clock 02 April 2025 • 2 min read
Shard Capital's Julian Wheeler: Trump 'gambling with fate of US economy'
US

Shard Capital's Julian Wheeler: Trump 'gambling with fate of US economy'

Trump behaving with 'absolutism'

Julian Wheeler
clock 24 March 2025 • 3 min read
Trustpilot