The likelihood of the first US interest rate hike since 2006 increased today as inflation rose +0.2% in November. Both the monthly and annualised figure of +2% was in line with market forecasts and was helped to some extent by the base effect of the fall in the price of oil, over 18 months of falls now, created less of a drag. However, further falls in early December may reassert some pressure. UK inflation rose +0.1% in November compared to the -0.1% fall in October, again influenced by a more stable oil price last month. Sterling held steady. It was the US dollar which strengthened over half a percent against both Sterling, to $1.504, and against the Euro at $1.0923.
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US Federal reserve raises interest rates by 0.25%
US Federal reserve raises interest rates by 0.25%