Cast your mind back to the end of last October; equities had just returned -7.5% in the previous six weeks, the ‘higher for longer’ interest rate narrative was pervasive, and markets felt a hawkish Federal Reserve would ‘only’ deliver three interest rate cuts in 2024. Fast forward to today, markets are 24% higher, the AI narrative has lifted equities once again, and markets hit a new all-time high last week – as the Fed confirms they would deliver three interest rate cuts in 2024.


In terms of other monetary policy news, it was interesting to note two quick fire headlines that hit the newsfeed almost simultaneously over lunch on Thursday:

  1. The Swiss National Bank (SNB) surprised by cutting their main rate 25bps to 1.50%
  2. The Turkish Central Bank raised its main interest rate by 500bps to 50.00%

Whilst the market focus is (rightly) on the actions of the Fed, it is always worth noting the conspicuous divergence in central bank policy in respective monetary jurisdictions.


As always, if you wish to discuss anything in further detail, please do get in touch.