I had a lengthy call with several team partners from Singapore and Hong Kong this morning. We discussed the latest rate actions from both the Bank of Japan and the Bank of England.
In case you were curious, the BOJ hiked rates, for the second time this year, to the new rate of 0.25%, a level not seen since 2008. In addition, the BOJ announced plans to reduce their Japanese Government Bond (JGB) holdings or to begin a de facto Quantitative Tightening.
Elsewhere, the Bank of England has cut rates for the first time this cycle, by a quarter point to 5% in more than four years. The Bank of England’s governor said a decision to cut interest rates is “an important moment in time” but warned people not to expect a sharp fall in the coming months.
The discussion supports the dynamic nature of our work and the importance of maintaining strong and open lines of communication, providing a chance to realign our strategies and brainstorm fresh ideas.
