Interest Rate

• European equity markets, including the DAX, CAC, and FTSE100, traded higher on Thursday as strong corporate earnings helped offset investor uncertainty regarding U.S. interest rates. • France's INSEE reported a 0.2% expansion in gross domestic product for the second quarter, successfully reversing a 0.1% contraction seen in the first quarter. • Economic data further indicated an acceleration in French household spending during June, primarily driven by increased expenditures on energy and food.

Price of an average home now £277,542, up from £277,484 the previous month but lower than in May, says NationwideBusiness live – latest updatesEconomic uncertainty dampened UK house price growth in July as prospective house buyers remained cautious about interest rates during the US war with Iran in what should be peak housebuying season.House prices rose by just 0.1% in July from a month earlier, according to the lender Nationwide, while annual price growth slowed to 1.8% this month, down from 2.2% in June. Continue reading...

• The Federal Reserve voted 9 to 3 on Wednesday to keep its benchmark short-term borrowing rate steady within a range of 3.5% to 3.75%. • This decision reflects a divide among policymakers, though the majority remains committed to curbing stubborn inflation. • The rate hold directly impacts the cost of credit across the economy, affecting business financing, credit cards, and auto loans.

Bank’s wariness about inflationary pressures from the conflict lie behind decision to hold steady at 3.75%Business live – latest updatesThere is a threat of high inflation coming to the UK, but only from the conflict in the Middle East which could keep oil prices high for much longer than was expected when Donald Trump first began attacking Iran.It is the war that makes the difference between a benign outlook for inflation and one that puts it back on a rising trajectory, top UK central bankers believe. Continue reading...

Split vote comes as Iran war is rekindled and oil price climbs back above $90 a barrelThe Bank of England has kept UK interest rates on hold as fears mount over rising inflation triggered by the Iran war.Against a volatile backdrop in the Middle East conflict, the Bank’s monetary policy committee voted to keep its key base rate at the current level of 3.75%, although the decision was not unanimous. Continue reading...

Bank’s chair pledges to keep up fight against inflation but decision brings fears the Fed is failing to keep paceUS government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation.The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Continue reading...

• Federal Reserve Chair Warsh announced on Wednesday that the central bank will leave its key interest rate unchanged despite persistent inflation and rising energy prices linked to the Iran war. • Appointed by President Donald Trump, Warsh is implementing a strategy of providing fewer signals to financial markets regarding the Fed's future interest rate intentions. • This shift toward reticence is cited as a contributing factor to rising bond yields, with the 10-year Treasury yield climbing from 4.50% in mid-June to 4.64% prior to the decision.