The recent cut in interest rates by the Bank of England signals a potential global shift, as central banks move to support economic growth amid easing inflation.
Governor Andrew Bailey stated that while inflation in the UK remains above target, any further rate cuts will be made cautiously, indicating a careful approach to economic recovery.
Investors should expect not only BoE rate cuts, but also similar moves from other major central banks, reflecting a worldwide consensus to support economic expansion.
Periods of lower interest rates can renew interest in growth stocks, particularly in sectors like tech and consumer discretionary, as cheaper financing boosts their value potential.
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