DAVY VIEW

The US economy is growing strongly, and a higher Federal Funds Rate is justified by a stronger labour market and above-target inflation. For the UK, an increase to Bank Rate last month was accompanied by a very hawkish revision to inflation projections by the Bank of England (BoE). We think this looks overdone, although the UK economy has performed stronger than expected. This week will also see updated figures for Ireland’s infrastructure gap as of 2025 and employee payrolls for September.