The Bank of England is currently maintaining its interest rate at 5.25%, a level unchanged for the past 15 months, despite nearing their 2% inflation target, raising speculation about a potential rate cut possibly by September. The Bank is due to make an announcement this week that may provide further insights into their future monetary policy decisions.

In Indonesia, amidst unstable currency markets and high U.S. Federal Reserve rates, Bank Indonesia has increased interest rates, now at 6.25%, to safeguard the Indonesian economy. The central bank has also intervened in the currency market to support the rupiah and is prepared to continue such measures if necessary.

Asian financial markets experienced mixed results, with Japan’s Nikkei 225 and South Korea’s Kospi seeing significant gains, while Hong Kong’s Hang Seng index declined. Following a steady interest rate by the Reserve Bank of Australia, the S&P/ASX 200 in Australia rose by 1.3%.

Australia’s Reserve Bank has adjusted its outlook, indicating interest rates may remain steady until mid-2025 due to persistent inflation, which challenges earlier expectations of rate cuts. The Australian dollar fell following the announcement, but the S&P/ASX 200 index rose slightly.

In the UK, the construction sector saw its fastest growth in over a year this April, with the S&P Global UK Construction PMI reaching 53, indicating expansion especially in commercial and civil engineering projects. This growth aligns with expectations of a UK economic rebound after a brief recession last year.

House prices in the UK have shown a slight increase in April, according to Halifax, with regions like North-east England, Northern Ireland, and Scotland being notably more affordable compared to London and the south-east. Despite economic pressures, there is optimism in the housing market, with expectations of price rises continuing through 2024, influenced by potential changes in interest rates.