BANK OF ENGLAND MONETARY POLICY SUMMARY, SEPTEMBER 2024 The Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment.

The Fed is about to cut the Fed Funds Rate by 25 basis points while maintaining Quantitative Tightening for the first time ever. Read more on QE and QT here.

As recent data show that inflation in the US has fallen below 3 percent, close to the 2 percent target the Fed had set, expectations of a Fed rate cut had been growing. The slowed economic growth and the rise of the unemployment rate to 4.2 percent from 3.4 percent in early 2023 could be other reasons for the latest rate cut.

Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected, and said any cuts must wait until the first quarter of next year, boosting the crown currency.

The Bank of England has held interest rates at 5 per cent after inflation remained steady in August, but indicated it may lower borrowing costs again as soon as November. The Monetary Policy Committee’s eight-to-one decision on Thursday came after it cut borrowing costs by a quarter point at its meeting last month.

The BOE got ahead of the Federal Reserve by making its first cut since the Covid-19 pandemic at the beginning of August.