tjh290633 wrote:dealtn wrote:
Which you keep saying but not acknowledging the UK moved first and has also tightened policy through QE reversal. Perhaps you can flesh out your argument here and provide some evidence to back it up?
I don't need to. Look at the respective rates.
TJH
Well since the GFC in 2009, the Fed was the first to start raising rates off the floor in 2016. Because of Covid they then dropped them abruptly before starting a renewed round of tightening in Feb 22.
The UK had no real tightening move from 2009 until Dec 21. So arguably the Fed was the first to ditch ZIRP.
In addition, for almost all of the last 50 years UK base rates have been above US rates, so the present situation of UK rates below the US is highly irregular, and suggests policy is about to enter a phase of volatility.