Insights

Weekly Market Commentary

21 October 2024

This week brought better news on inflation as the headline rate in the UK slowed to 1.7%. The decline was bigger than expected and has been positive for UK government bonds which have gained following slower wage inflation and low GDP growth. European government bonds have also risen. The European Central Bank rate cut was in line with expectations, however, Christine Lagarde’s comments appeared much more confident about the end of inflation in the Eurozone and clear the way for the bank to concentrate on the low economic growth in the region.