Market Update | August 2023
Central banks like the Federal Reserve (Fed), Bank of England (BoE), and European Central Bank (ECB) are all signaling higher interest rates, with an emphasis on longer-term rate increases. This trend has been driven by rising US treasury yields and disappointing economic data from China, which have impacted currency markets. Additionally, forward-looking ISM Surveys in Europe, the UK, and the US have shown weakness. After the Jackson Hole symposium, analysts are contemplating the possibility of a final rate hike from the Fed, while the BoE is expected to continue raising rates, although uncertainty surrounds the ECB’s stance on rate hikes.