The Bank of England lowered interest rates by a quarter percentage point and maintained its gradual-easing approach as officials assess US trade policy risks that also explain the Federal Reserve’s decision to remain sidelined.
The BOE move highlighted a more careful tack toward cutting rates than traders had anticipated. Five members voted for the action, while two wanted a larger half-point reduction and another two voted to hold rates steady.
In the US, uncertainty about the impact from tariffs prompted a unanimous vote by Fed officials to hold interest rates steady. Fed Chair Jerome Powell said he and his colleagues are in no hurry to adjust policy as tariffs risk leading to both higher inflation and unemployment.
Meanwhile, China lowered its policy rate and reduced the amount of cash lenders must keep in reserve, illustrating efforts to bolster an economy caught in a trade war with the US.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: