All Eyes Are on the Bank of England After the Fed and the ECB Have Their Say

The European Central Bank raised its deposit rate by 25 basis points last week to 3.75%, while the Federal Reserve kept its funds target rate at 5.25%. Both central banks indicated that they do not exclude further hikes if inflation figures disappoint, and that interest rates may have to stay at elevated levels for longer. Investors were expecting these moves and bond yields hardly moved.