NatWest Chief Economist highlights the contrasting monetary policy stances of the Bank of England (BoE) and the Federal Reserve amid cooling labor markets and persistent inflation.
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UK outlook: The BoE kept rates at 4%, citing inflation near double target and modestly hawkish guidance; businesses remain cautious with subdued investment and hiring.
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Consumer dynamics: UK retail sales rose 0.5% in August, but consumer confidence dipped, signaling fragility despite short-term resilience.
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US contrast: The Fed delivered its first 25 bps cut this year, signaling more easing as labor market softness outweighs inflation risks.
How should investors position for these diverging monetary paths? Explore the full report for deeper insights.
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