UK and European stocks have opened slightly higher this morning after the US Federal Reserve delivered its latest forecasts for the US economy. At the conclusion of its two-day meeting on Wednesday the Fed said it does not expect to be raising interest rates before the end of 2023. Real GDP growth is now expected to grow 6.5% in 2021 (up from an expectation of 4.2% in December) and inflation is anticipated to rise to 2.4% this year.
Following the announcement, the 10-year Treasury yield reached 1.67%, a 14-month high and equities rose.
The Bank of England is meeting today and is also expected to keep interest rates on hold.
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