WS #16130
Macro data presents a mixed picture for central bank policy. In the UK, unemployment fell to 4.7%, boosting odds of a Bank of England rate hike, while the Bank of Japan is expected to raise its inflation forecast. In the US, September CPI data showed a rebound, with core inflation rising faster than expected, complicating the Federal Reserve's path to rate cuts. This persistent inflation pressure, exacerbated by the energy shock, suggests a higher-for-longer rate environment, which is bearish for growth stocks and REITs.
Macro Data: UK Inflation & US CPI
Macro data presents a mixed picture for central bank policy. In the UK, unemployment fell to 4.7%, boosting odds of a Bank of England rate hike, while the Bank of Japan is expected to raise its inflation forecast. In the US, September CPI data showed a rebound, with core inflation rising faster than expected, complicating the Federal Reserve's path to rate cuts. This persistent inflation pressure, exacerbated by the energy shock, suggests a higher-for-longer rate environment, which is bearish for growth stocks and REITs.