Bank of England halted hike the rate today.
It’s the first time since 2021 December, BOE haven’t raised the rate. They’re now more worrying about the recessions not the inflation. Similar tunes in Swiss as well. Swiss National Bank stopped the rate hike.
Now, the world is more worrying about the recessions than inflation. But at the same time, they need to control the inflation anyway. That’s why many central banks stopped the rate hike this month, but no will to down the rate anytime soon.
Due to this solidarity tones, for the time being, stock markets will be collapsed and US dollar will be stronger.
US stock markets were collapsing today. Wide spread of higher and longer rates tunes around the world,
Pulled down the equity markets of the world. US markets led the fall today.
DJ Index was downed by 1.1%, S&P 500 index was downed by 1.6% NASDAQ Index was downed by 1.8%.
MEGA CAP big named stocks were mainly collapsing. Apple was downed by 0.9%, Amazon was downed by 4.4%, MS was downed by 0.4% Tesla was downed by 2.6%.
Is this stock collapsing will be continued? Yes, governments wouldn’t like this, especially those countries with turmoil politics.
But who could stop this? It’s almost like a natural law… It’s just a matter of choices, recessions, or inflations? What could be your choice?
US dollar Index was up 0.2% ending at 105.35 point today. It’s raising again but very slowly.
It was a kind of surprise to see that Bank of England and Swiss have decided not to raise the rate this time. But as we’ve heard from our European friends, living in Europe quickly becomes hell and no exit at all.
BOE must be afraid of killing UK’s economy faster with raise the rate this time. But, on a second thought, their economy is dying anyway…