In a surprise development, the Bank of England left monetary policy unchanged last week but indicated interest rates will probably have to rise in coming months. The Pound fell and stocks rose
The US Federal Reserve announced its tapering plans after Wednesday’s policy meeting. The Fed will reduce its bond purchases by $15 billion this month and next. This was widely expected and taken well by the markets as it leaves the Fed with room to manoeuvre and make adjustments depending on economic indications.
The central bank indicated there was no rush to raise rates and reaffirmed its belief that inflationary pressure will be transitory.
Very late on Friday, Joe Biden’s $1.2 trillion infrastructure plan was given Congress approval in what the President described as a “monumental step forward”.
At the start of this week investors were digesting data from China which indicated Chinese exports rose 27.1% over the last year, much better than expectations.
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