The latest issue of the Blackfinch Spring VCT PLC newsletter provides a comprehensive overview of the global economic landscape. In the UK, the Bank of England (BoE) maintained its interest rates at a 16-year high of 5.25%, citing signs of inflationary persistence, particularly in the service sector. Despite a drop in inflation to a two-and-a-half-year low of 3.4% in February, public sector net borrowing exceeded expectations, and wet weather impacted in-store sales. However, there was a positive shift in consumer confidence regarding personal finances.
In North America, the US saw a decrease in initial jobless claims, falling to 210k for the week ended 16th March, below the consensus forecast of 213k. The report suggests that the US Federal Reserve is closely monitoring the labor market to support a continued slowing in wage growth, rather than a significant weakening to cut interest rates.
Eurozone's annual inflation rate decreased to 2.6% in February 2024, down from 2.8% in January, with a notable slowdown in food, alcohol, and tobacco inflation. In Turkey, the Central Bank raised its policy rate from 45% to 50% due to a sharp increase in inflation, reaching 67% in February. Meanwhile, Germany's economic confidence improved, as indicated by the rise in the Indicator of Economic Sentiment.
In Asia, the Bank of Japan raised borrowing costs for the first time since 2007, marking the end of its policy of negative interest rates. China's property investment declined by 9.0% year-on-year in the first two months of 2024, showing signs of stabilization and transition in the property market.
On a global scale, the Bank of Russia maintained interest rates at 16%, noting a gradual easing of inflationary pressures but with high inflation remaining. The newsletter also invites participation in the Investment Life & Pensions Moneyfacts Group plc Awards 2024, encouraging support in categories such as Best Tax and Estate Planning Solutions Provider and Best Venture Capital Trust Provider.
This comprehensive update from Blackfinch Spring VCT PLC offers valuable insights into the global economic landscape, providing advisors with the necessary information for informed client conversations and decision-making.