Policymakers at the US Federal Reserve will decide on interest rates today amid widespread expectations for the first hike in nearly a decade.

Bank of England policymakers are expected to keep interest rates at record lows, but the decision comes as the US Federal Reserve is poised to make its first increase in nearly a decade.

The US economy expanded more than previously estimated in the second quarter of the year on stronger consumer spending and construction, backing the case for an interest rate rise before the end of the year.

These are, indeed, strange times on the global interest rate front. 

China’s shock move to trigger the biggest one-day decline in its currency for more than 20 years is evidence that the currency wars are still live.

The June meeting of the US Federal Reserve’s Monetary Policy Committee, held last week, concluded with no changes being made, which was in line with the market consensus, writes Oliver Mangan.

With the US Federal Reserve expected to leave interest rates on hold this week, the market will be focusing on policymakers for clear signals on when the central bank will make its first interest rate hike in nearly a decade.

As expected, last week’s US Federal Reserve’s March meeting statement dropped the reference to the Fed being ‘patient’ in regard to increasing interest rates.