Macro: strong productivity, sticky inflation, BoE hike
Q3 US productivity surged 3.6% against a 0.7% contraction expected, jobless claims are at multi-decade lows, and the Fed's Barkin calls inflation the key risk. The BoE raised rates to 4%.
What we know
Walter Bloomberg reports productivity up 3.6% with unit labor costs down 0.7%, and Brynjolfsson calls it evidence of a turning point. Bilello notes jobless claims at their lowest since 1969. Barkin says inflation is the main risk and policy is near neutral, and the FT reports the BoE hike to 4%.
How the story developed
Q3 US productivity surged 3.6% against a 0.7% contraction expected, jobless claims are at multi-decade lows, and the Fed's Barkin calls inflation the key risk. The BoE raised rates to 4%.
The Bank of England raised rates for the first time since 2023 and signalled more to come, while Fed's Hammack called for gradual hikes as inflation worsens. 10Y yields sit near 4.9%.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.