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America just sneezed!

. Economy.

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For once we may not get a cold from an American sneeze; but they yesterday raised their “Base Rate” as the Discount Rate has just risen from 0.5% to 0.75%. It is not expected to feed through to consumers as – like us – there is now a disconnect; but it is a symbolic step.

It is a sign that higher rates are now most definitely on the horizon worldwide though. And it took markets by surprise!

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