The Bank of England (BOE) has frozen its base rate at 3.75% per annum. Despite inflation entering a slowdown trend, the BOE is seen to be maintaining a cautious monetary policy stance, carefully balancing price stability and economic conditions.

However, market attention is focused more on the next move by the U.S. Federal Reserve (Fed) than on the UK's decision. The Fed also previously froze its base rate, but it sent a hawkish message that did not rule out the possibility of additional tightening, dampening global investor sentiment.

New York Stock Market Falls Across the Board... Big Tech Leads the Decline

Anxiety over the Fed's stance translated directly into investor behavior. With concerns that the timing of rate cuts could be later than market expectations combined with the possibility of additional tightening, movements to reduce exposure to risk assets became pronounced.

In particular, the decline in major technology stocks was notable. NVIDIA, considered a prime beneficiary of artificial intelligence (AI), fell 1.33%, while Apple also recorded a decline of around 1%. Tesla also dropped more than 2%, taking a direct hit from the contraction in investor sentiment.

Experts: "Price stability will be a variable for now... pace of rate cuts could be slow"

Experts predict that both the UK and the U.S. will focus on confirming future price stability. The BOE's rate freeze is interpreted as a signal cautioning against a premature shift to easing, given that inflationary pressures have not fully subsided.

Ultimately, the observation that even if major central banks enter a rate-cutting cycle, the pace could be slower than expected is gaining traction. Accordingly, global stock markets are expected to react more sensitively to future inflation and employment data releases as well as remarks from key central bank officials.

[※ This article was written with the assistance of AI based on publicly available market data and various materials, with final editing and review conducted by the editorial board. The content included in this article is reference information for investment decisions and does not constitute a recommendation to buy or sell specific stocks or guarantee returns. As information may fluctuate depending on financial market conditions, responsibility for investment decisions lies with the investor.]