This week saw both the Bank of England (BoE) and the US Federal Reserve (the Fed) gently slanting towards a more hawkish view on their respective monetary policies, following the recent dovish views expressed by both central banks. With US second quarter GDP rising a tan annualised rate of 6.5% and the UK expecting their GDP for 2021 to rise to 7.25%,both regions have started changing their tune. With the Fed currently buying $120 billion indebt instruments per month, Wednesday’s meeting indicated that they will now look to scale back on their bond purchasing program in early 2022, as the economy gradually finds its own sustainable traction.
Peregrine Wealth