BoE Rate Cuts: Navigating the Uncertainty of Future Reductions

As we expected , the Bank of England cut interest rates following a narrow vote among Monetary Policy Committee members (5-4) , with Governor Andrew Bailey shifting his stance to support the reduction. The Bank indicated that the pace of future rate cuts could slow, making the decision on how much further to reduce rates "a closer call." While there has not been a substantial downturn in the labo u r market and inflation expectations have not decreased significantly, inflation is expected to decline more rapidly toward the 2% target in the near term. As the pace of interest rate cuts is ...

Who and which sectors will suffer the most from Mexico’s new tariffs targeting Asia?

While the US has reached trade agreements with most Asian markets, Mexico has reignited the tariff war by imposing up to 50% import duties. These tariffs may be related to Trump’s intention to push away Chinese exports (directly or indirectly through other Asian countries) from Mexico to the US before renewing the US-Mexico-Canada Agreement (USMCA).On the macro level, exports to Mexico from Asia remain mild. China and South Korea are affected more given the size of trade with 2.4% and 2.7% of exports. Automobiles and steel will be hit the most, but an important point is batteries are not on th...

日銀プレビュー：しつこい円安が 25bps の利上げで日銀と政府の合意を可能にする