Federal Reserve will start lowering interest rates when it next meets in September, starting with a cut of 0.25 per cent from its current target in the 5.25-per-cent to 5.5-per-cent
Calm was quickly restored, though, since the fundamentals in the U.S. economy didn’t warrant a crash. And when the deputy governor of the Bank of Japan gave a speech on Wednesday in which he hinted the BOJ would go slow with further rate rises, it reassured Japanese investors that the sky wouldn’t soon be falling after all. Nevertheless, we’re likely to see more of this.and stocks to cryptocurrencies and meme stocks, has gone into reverse. That won’t change soon.
ahead of the Fed, with two cuts so far, bond yields, which affect borrowing costs, are still pretty much where they were at the start of this year. That’s because south of the border, the stronger economy and high fiscal deficit is keeping upward pressure on U.S. interest rates, affecting the bond yields here.