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BOE Holds Rates Steady. Why It Isn’t Following the Fed.

1. The BOE held its interest rate steady at 4%. 2. Seven of nine committee members voted to maintain rates. 3. BOE plans to trim gilt holdings by £70 billion over next year. 4. Inflation rate stands at 3.8%, above BOE's target. 5. FTSE 100 shows growth, up 13% in 2025.

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FAQ

Why Neutral?

While steady rates suggest economic stability, inflationary pressure limits growth potential, leading to a neutral impact on SPY.

How important is it?

The article discusses the BOE's monetary policy, which can influence U.S. markets indirectly. However, direct implications for SPY are limited at this time.

Why Short Term?

Immediate effects on market sentiment may be felt, especially as U.S. actions are quickly reflected in SPY movements.

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