Three central banks, two very different messages on interest rates

The IDA's annual report on companies supported by them shows tech job losses. This is consistent with Ireland's external trade data - although the latter remains heavily distorted by post-pandemic return to normal for pharmaceutical exports.

Three central banks met this week. All left interest rates unchanged but delivered very different messages. Members of the Federal Reserve's rate setting committee explicitly forecast US rate cuts next year. At a time when the US economy remains in rude health, is growing strongly and the labour market remains very tight.

The Bank of England and the ECB both said it is far too early to be even thinking about rate cuts, despite weak economies. Three BoE rate setting headbangers even voted for rate hikes!

At least one of these central banks is going to be wrong. Probably all of them.

All we are prepared to predict is that your mortgage and other borrowing costs are likely to change next year.

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