Money News Overview Tuesday 30th January 2024: Interest rates the key talking point this week

Following Monday’s slow start to the week, the economic calendar kicks off with a flurry of data across Europe.

The main talking point today being the release of European GDP figures, markets expect this to come in at -0.1% which is the same as last quarter. However, year on year growth shows a decline of 0.1% to 0%. 

Alongside this the Eurozone will release its consumer confidence report, where confidence is expected to fall to -16.1. 

Looking ahead this week the major releases are in the US and the UK, where the US Federal Reserve will announce their interest rate decision. Markets expect this to come in with no change at 5.5%, however there is talk that rates could fall soon as inflation is falling much quicker than expected over in the US. 

As for the UK, investors look ahead to Thursday for the release of their interest rate announcement. There is no surprise in the forecast as markets expect the Bank of England to leave rates unchanged for the fourth consecutive month. 

Bank of England Governor Bailey has continued to reiterate that rates will not be falling until there is major movements towards reaching the 2% inflation mark that the government has set out. Warning that the fall from 4% to 2% will be the toughest test yet. 

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