toptestmotor.com
toptestmotor.com Setiembre 24, 2020


Bank of England - heading back to the dovecote

06 Agosto 2017, 01:11 | Azura Castelo

Office business tools with dollars and calculator on table

Office business tools with dollars and calculator on table

Mark Carney's comments came as the Bank voted to hold rates and cut growth forecasts. Weaker GDP growth partly reflects a weaker supply-side performance (with weaker productivity growth), which translates into weaker wage growth and adds to the squeeze in households' real incomes.

It is expected that inflation, which is also referred to as CPIH in the United Kingdom, will increase by 0.1% in the third quarter to 2.7% and predicted to reach 3% in October 2017.

Prior to the BoE's policy announcement and the Inflation Report, the pound had been rising to new 2017 highs against the United States dollar.

Wages have been hit by rising prices - a direct result of the 13% drop in the value of the pound following the Brexit referendum previous year. "That was slightly stronger than expected in May, and much stronger than total household real income which fell by 1.3% in Q1", the Inflation report noted.

But he said wages will start to outpace inflation next year, while growth will also begin to pick up.


The Bank slashed its economic growth forecasts for 2017 to 1.7% from 1.9% and lowered next year's estimate to 1.6% from 1.7%.

Kristin Forbes' departure from the BoE will likely lead to a 6-2 vote in favor of keeping interest rates unchanged today, with Ian McCafferty and Michael Saunders to remain the two dissenters.

And with signs that the United Kingdom is heading for a chaotic Brexit the Bank could be justified in taking a more vocal stance - you can be assured, a chaotic Brexit will hammer Sterling even further.

CPI inflation was 2.6 percent in June, having risen from 0.5 percent in May past year following the fall in sterling against other currencies. It also shaved its growth forecast for next year to 1.6 per cent from 1.7 per cent, but kept 2019 at 1.8 per cent.

Britain's main share index, whose internationally focused constituents tend to gain when sterling falls, climbed to the day's high, up 0.4 percent, with mid-caps also up 0.3 percent at their highest level of the day.


However, the MPC voted unanimously to close the drawdown period for the Term Funding Scheme (TFS) on February 28, 2018, as planned when the scheme began last August as part of the post-referendum economic stimulus measures.

The MPC's next interest rate vote is not due until November.

But James Smith, economist at ING, said a rate rise was still unlikely this year.

For now, though, the GBP/USD looks like it wants to head lower, especially if it manages to break the key 1.3150 short-term support level on a daily closing basis. Firstly because consumer prices slipped from 2.9% to 2.6% in June, suggesting that the central bank may need to assess whether prices will ease further, after topping out in May.




Otras noticias

Tendencias Ahora

Senate GOP leaders are hypocritical critics — Gazette editorial
Insurance companies would have no choice but to accelerate the process some already have begun, of pulling out of entire regions. Everyone is supposed to buy insurance, but 40 counties in the U.S. have no insurance companies offering any policies.

GalleTest: Sri Lanka 50/2 in rply of India's 622 on day 2
In the very next over, Yadav had Kusal Mendis (24) caught at mid-on, striking a double body blow to Sri Lanka s hopes of defiance. Ashwin forced Angelo Mathews (26) for a close-in catch to Chetenshwar Pujara and Jadeja bowled out Dhananjaya de Silva.

Community Shield match preview with Llion Carbis — Arsenal
Arsene Wenger will be missing Santi Cazorla (ankle surgery), Gabriel Paulista (knee) and Joel Campbell (wound) through injury. Chelsea coach Antonio Conte will be hoping that the curse of the English champions does not strike him down this season.

Sen. Lamar Alexander on health care fix: 'Put out the fire'
The announcement marks a change in strategy after the failure last week of Republican efforts to repeal and replace Obamacare. Indeed, most of the coming efforts in Congress run counter to what the White House has suggested ought to happen.

Farah thrills huge crowd with 10000m win
Gold in the 10,000 meters is at stake for Farah. "He's a true British sporting hero". Cheptegei turned out the front runner posting a personal best of 26:49.94.

Why Trump will fire John Kelly too — Op-Ed
Kelly also was supportive of the president's high-profile promise to build a wall on the U.S. -Mexico border. He actually told Fox News on Tuesday that "I'll always support whatever decisions that the president makes".

Neymar PSG debut delayed due to missed transfer certificate deadline
They also have the Uruguay attacked Edinson Cavani to help Neymar in attack (he scored 35 goals in the last season of Ligue 1 ). He said, "They will pay Neymar's release clause today [Wednesday], so the presentation can take place at the end of the week".

Insurers want to increase premiums by 30 percent or more
The moves were a remarkable response to the president's repeated threats to send health insurance markets into a tailspin . The way such an arrangement would work would be a group, say a professional association, to offer group health insurance.

West Virginia Gov. Jim Justice Switches to Republican Party
Just last week, Justice rode in a limo with Trump as the president was in the state to talk to Boy Scouts. It will, however, be a shock for Senator Joe Manchin, the state's lone, stubborn Democrat in Congress.

John Kelly must quell the White House chaos | Guest Editorial
Since starting this week, Kelly has told aides that anyone briefing the president needs to show him the information first. In addition to strain in the West Wing and with Congress, Kelly starts his new job as tensions escalate with North Korea.