The Bank of England Just Did Something No One Expected

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Aug 8, 2025

The Bank of England made an unexpected decision to cut interest rates, stirring conversation about institutional hesitance amid economic struggles. Delve into the complexities of how central banks, particularly in Europe, grapple with policy amid rising unemployment and declining GDP. The podcast also highlights a shift toward using gold as a practical currency through innovative services. Explore the paradoxes of central banking, where optimistic narratives clash with harsh economic realities.

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INSIGHT

Rate Cuts Are Like A Popped Can

Jeff Snider likens rate cutting cycles to a popped Pringles can: once started they accelerate.
Central bankers resist, but market forces and accumulating data push cuts onward.

ADVICE

Let Markets Guide Your Rate Expectations

Use market pricing as a leading indicator because markets already price where central banks will end up.
Watch bond and futures pricing to anticipate the timing of rate cuts.

INSIGHT

Cuts Are An Admission Of Failure

Jeff Snider notes that cutting rates signals policymakers admitted something is wrong with the economy.
That institutional bias delays cuts until evidence becomes 'unambiguously irresistible.'

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This had never happened before, an unprecedented vote for the Bank of England's Monetary Policy Committee. Despite it, the Pringles can remains undeterred since this is what rate cutting cycles are. The destination remains the same and another drop in employment in the UK as well as France further proves it.

Eurodollar University's Money & Macro Analysis

https://www.eurodollar.university
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