Interest rate cuts? The search for yields gets harder - Pembroke Financial

The search for yields gets harder

In September the Bank of England held off from following the Federal Reserve (the Fed) and the European Central Bank (the ECB) with interest rate cuts. When the US central bank, the Fed, cut its main interest rate by 0.25% at the end of July, it was the first decrease in over 10 years. Less than two months later, the Fed announced a second cut, by another 0.25%. The Fed’s move followed on from a rate change at the ECB. Here, the main rate was left unchanged (at 0.0%), but the negative rate applied to deposits made by commercial banks was moved from -0.4% to -0.5%.