Minutes from the most recent Federal Reserve monetary policy meeting that ended on May 1 show that policymakers grew more concerned about inflation, with members expressing a lack of confidence to cut interest rates. On the contrary, various participants showed a willingness to tighten policy further if inflationary risks resurface in such a way that justifies such a move, the minutes showed. However, following the meeting, Fed chair Jerome Powell told a news conference it was “unlikely” the Fed would resume raising its key rate – a remark that soothed financial markets.

In the meantime, house prices in the UK rose for the first time in almost a year during March, data published by the Office for National Statistics showed on Wednesday. British house prices increased by 1.8 per cent on an annual basis in March after a 0.2 per cent fall in February, the data showed.

Separately, a measure of private rents rose by 8.9 per cent in the year to April, recording the first slowdown so far in 2024, after decreasing from the 9.2 per cent rise in the 12 months to March, according to the ONS.

Britain’s housing market has in recent months shown tentative signs of recovery from last year’s slowdown, which saw house prices under pressure as a result of higher borrowing costs. Falling inflation has supported household incomes and raised the possibility of the Bank of England cutting interest rates.

Finally, private sector activity in India rose sharply in May, on the heels of a strong services sector; the HSBC’s flash India Composite Purchasing Managers’ Index, compiled by S&P Global, came in at 61.7 this month, up from April’s 61.5, marking its 34th consecutive month above the 50-level, which separates expansion from contraction.

The report showed strong demand, supported by the services sector’s fastest growing new business since January, increasing manufacturing output and new orders, as well as exports rising at a record pace and the sharpest job creation rate in almost 18 years.

This article does not constitute legal and/or financial advice and is being issued for information purposes only by Bank of Valletta plc, 58, Zachary Street, Valletta. Bank of Valletta is a public limited company regulated by the MFSA and is licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta).