A plethora of Central Bank rate decisions, from Europe, allowed for some optimism from equity and bond markets. The ECB, Norge’s and Riksbank all decided to leave rates unchanged, while the Bank of England took the opportunity to cut rates 25 basis points, to 3.75%. The Bank of England has sustained elevated interest rates, as inflation has remained stubbornly high, but this weeks inflation cooling allowed the Central Bank some latitude. US inflation also cooled considerably, falling from 3.1%, to 2.7%, leaving many unanswered questions from the Federal Reserve. The EUR drifted back to 1.1700, while the GBP traded 1.3375, following the BofE decision.Commodity currencies remain subdued, with the NZD sliding back to 0.5760, while the AUD struggles to hold 0.6600. Local markets keenly await the Bank of Japan rate decision, expected today, where a rate rise is expected.
