The Bank of England showed the FED how to do it today raising their overnight lending rate from 0.1% all the way up to 0.25%, well, pequeno cojones, but better than the no cojones geldings at the FED. This on a day that covid cases were setting another record high in the UK, and with inflation lower than the US. This is also a bigger step than raising the US FED funds rate since many UK mortgages, unlike in the US, are adjustable and go up and down with this rate. More amazing, the UK stock market as I type is up more than 1% in the face of this interest rate hike (a tyke hike, but a hike never the less).
Unfortunately for Pound buyers like me, Cable loved this move and may have put in an important low, especially given the current commitment of futures traders positions. Blighty leading from behind.
Regards,
Douglas