The Society of Motor Manufacturers & Traders (SMMT) attributes the current decline to a shortage of components – particularly semiconductors – and problems with the global supply chain. Earlier today, the Reserve Bank of India announced a 40 basis points rise in its benchmark interest rate to 4.4%. On Tuesday this week, the Reserve Bank of Australia surprised economists by hiking its official rate by 25 basis points to 0.35%. As part of its two-day policy meeting that concluded today, the Federal Open Market Committee voted to raise the target range of the federal funds rate to between 0.75% and 1%. The Fed recently increased its interest rates ceiling from 0.5% to 1% and did not rule out similar moves during the remainder of this year. “The high street giants have passed on an insultingly small fraction of the rate rise to savers, so there’s no point holding on just in case they suddenly decide to do the decent thing”.

• “The 10% energy price cap kicking in from 1st October seems likely to push headline inflation up further, so it seems safe to say any rate cuts in the near future will be incremental.
• But yesterday’s news that the US Federal Reserve remained unchanged at its target range of 5.25% to 5.50%, with expectations of a cut in September, tipped the balance in favour of a cut for the UK.
• Further Bank of England interest rate announcements are scheduled for November and December.
• September’s inflation figure of 3.1% will be used to determine next year’s rise in the state pension.
• Prices were up 1.1% on a monthly basis, compared with a rise of 0.8%, month on month, in February 2022.
• The figure was down marginally from the 7.9% registered for the three months to July this year, but remains one of the highest rates since comparable records began in 2001.

August: Energy Costs Push Euro Prices To Record High

The company’s shares surged by 171% in 2024, culminating in a market capitalisation of $3.28 trillion, making it more valuable than Microsoft, yet still behind Apple. As of Monday, Zuckerberg’s net worth increased by over 4% to $217.7 billion, while Ellison’s wealth depreciated slightly to $209 billion. In a notable shift, Meta founder Mark Zuckerberg has surpassed Oracle founder Larry Ellison to secure the position normal balance of the third-wealthiest individual globally.

March: Inflation, Tariffs And War Fears Rattle Policymakers

The Federal Reserve implemented its rate cut to stimulate the US economy after a range of indicators suggested there 5 wealthiest people in the world was a growing danger of recession if borrowing costs were not reduced. “Higher prices for motor fuels and airfares have pushed up transport costs, while food and non-alcoholic drinks saw prices rise 3.3% year-on-year. Both will increase the squeeze on working households, as will the rise in council tax, which has seen owner-occupier housing costs rocket by 8% in 12 months. The Federal Reserve, the Bank’s US counterpart, yesterday held rates in the range 4.25% to 4.5%. Both central banks are nervous about the potential inflationary impact of President Trump’s aggressive use of tariffs on goods imported to the US.

January: Bank Of England Announcement Tomorrow

Inflation in the United States slowed to 7.7% in the year to October, down from 8.2% recorded a month earlier, taking the figure to its lowest annual level since the start of this year, Andrew Michael writes. Mr Fitzner added that increases to a range of food items also pushed up the inflation figure, although this was partially offset by a decline in motor fuels including a fall in the cost of petrol. However, with the rate still five times the EU’s target of 2%, forecasters believe the European Central Bank will raise interest rates across the bloc by half a percentage point when its governing council next meets on 15 December. Some analysts believe that, if the government’s energy price guarantee was not in place to limit average consumption household bills to £2,500 per annum (£3,000 per annum from April 2023), then the inflation figure would be close to 14%. Tomorrow, the Bank of England is expected to raise interest rates again – with forecasters predicting a half percentage point hike to 3.5% – as it attempts to tackle soaring prices against an increasingly recessionary backdrop.

November: Steep Rise As Bank Of England Mulls Rates Move

• In contrast, today’s rate increase could generate mixed feelings among the UK’s savers seeking better returns.
• The monthly reading of the Consumer Prices Index (CPI) showed that prices rose by 0.3% in May compared with a figure of 0.7% a year earlier.
• The calculation is based on an average tracker mortgage size of £136,512 and an average tracker pay rate of 6.47% (before today’s rate cut), according to the banking trade body’s data.
• Jensen Huang, CEO and co-founder of Nvidia, has entered the ranks of the top 10 richest people for the first time.
• The ECB’s announcement will bring Eurozone monetary policy more into line with the Bank of England and the US Federal Reserve which have raised interest rates multiple times this year.
• The latest ONS announcement is likely to pile more pressure on the BoE to take an aggressive stance on interest rates.

The Bank of England, which is set the task of holding long-term inflation at 2% by the government, will weigh up the latest wage growth and inflation data before it decides what to do next with the Bank Rate, which affects borrowers and savers alike. CPI including owner occupiers’ housing costs (CPIH) rose by 4.7% in the year to October, down from 6.3% a month earlier. Today’s Consumer Prices Index (CPI) from the Office for National Statistics (ONS) dropped to the lowest rate in nearly two years. On a monthly basis, the rate did not change in October 2023, compared with a rise of 2% for the same month last year, attributed largely to a spike in energy costs. The energy price cap in the UK, which limits how much suppliers can charge per unit of energy and for standing charges, will increase by 5% from £1,834 to £1,928 a year for a typical household from 1 January 2023. ‘’Today’s reading should be taken positively by the market as it bolsters arguments for the Federal Reserve to keep interest rates at current levels when they meet for the final time this year tomorrow.

Earlier today, the SNB reduced borrowing costs by a quarter of a percentage point, to 1.25%, having also delivered a surprise rate cut of the same amount in March. “Positivity spreads quickly and while today’s rate cut would have already been priced in, this will undoubtedly revitalise market activity. Mortgage holders nearing the end of their fixed-rate period and prospective buyers can now make informed decisions with greater confidence, rather than delaying further.

However, this was offset in the main figure by increases in petrol and diesel at the pumps. Today’s Consumer Prices Index (CPI) from the Office for National Statistics (ONS) came in slightly higher than market expectations and follows yesterday’s figures that showed UK wage growth had eased slightly to 7.8% in the three months to August. Along with other central banks, such as the Bank of England and the US Federal Reserve, the ECB is required to Catch Up Bookkeeping maintain inflation at 2% over the medium to long term.