The US Central Bank has cut interest rates for only the second time since 2008, due to concerns over slowing global growth and trade tensions. As expected, the Federal Reserve lowered the target range for its key interest rate by 25 basis points to between 1.75% and 2%. The bank said the cut is aimed at shoring up the US economy, amid “uncertainties” about future growth.
President Trump reacted by attacking Fed Chairman, Jerome Powell, for lacking “guts.” Mr Trump has repeatedly criticised the Fed for cutting rates too slowly.
Boris Johnson has been set a two week deadline to outline his Brexit plans to the EU, according to Finland’s Prime Minster. The Finnish Prime Minster, Antti Rinne, said that he and the French President, Emmanuel Macron, agreed that the UK needed to produce the proposals in writing by the end of September. He said that if this is not achieved, “then it’s over.”
A spokesman for Downing Street told reports that the UK will continue to negotiate and put forward proposals at the appropriate time. Mr Johnson has said that a deal is possible at a crucial summit of EU leaders on 17th October, but he has insisted Brexit will happen by the 31st October deadline, even if a deal is not agreed. Lastly, the UK government have said that talks with the EU have made progress since Johnson took over from May, but Johnson has since refused to give anything away.
09:30 – GBP: Retail sales m/m – Forecast at -0.2% from previous 0.2%.
12:30 – GBP: MPC Official bank rate votes – Unchanged at 0-0-9.
12:30 – GBP: Monetary Policy summary.
12:30 – GBP: Offical bank rate – Unchanged at 0.75%.