Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
Oil Prices Rise as Geopolitical Tensions and Supply Risks Intensify 
Dollar Slips as Weak U.S. Manufacturing Data Increases Pressure for Fed Rate Cuts 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Kazakhstan Central Bank Holds Interest Rate at 18% as Inflation Pressures Persist 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
BOK Expected to Hold Rates at 2.50% as Housing and Currency Pressures Persist 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call 
Singapore Maintains Steady Monetary Outlook as Positive Output Gap Persists into 2025 
The Bank of England (BoE) is expected to reduce the pace of its quantitative tightening (QT) when the Monetary Policy Committee meets on Thursday, while leaving interest rates unchanged at 4%. Economists polled by Reuters forecast the annual bond sales target will slow from £100 billion to around £67.5 billion, with some predicting a cut to as low as £60 billion. This move comes amid heightened volatility in UK bond markets and criticism that QT has worsened borrowing costs, particularly in long-dated gilts.
Although the BoE maintains that QT has only added 0.15–0.25 percentage points to government borrowing costs, yields on 20- and 30-year gilts recently hit their highest levels since 1998. Finance Minister Rachel Reeves faces added pressure ahead of her November 26 budget, with UK borrowing costs and inflation both topping the G7.
Inflation is forecast to peak at 4% this month before gradually easing toward the 2% target by mid-2027. Data from August showed inflation holding at 3.8%, its highest in 19 months. While the BoE cut rates five times since August 2024, Governor Andrew Bailey has signaled uncertainty about how quickly further reductions will follow. Analysts expect a 7-2 vote in favor of holding rates this month.
Interest rate futures now price only a 30% chance of another cut this year, although many economists anticipate one more reduction in late 2024, followed by another in early 2025. Evercore ISI’s Krishna Guha noted the BoE may lean dovish on QT while staying hawkish on rates, with policy likely on hold until well into 2026.
