Enero 23, 2018

Sterling Surges as UK Inflation Jumps Higher

14 Setiembre 2017, 11:41 | Dolorita Barahona

Sterling Surges as UK Inflation Jumps Higher

FTSE Slips as Pound Soars

Here's how City A.M.'s Shadow MPC voted. "The risks of a hike are not zero and may be growing", economists at Bank of America Merrill Lynch said on Tuesday. Inflation is now well above the bank's target of 2 percent, worsening the dilemma for rate-setters who are anxious about raising rates amid the economic uncertainty. Muddled messages from Mr Carney further dented bullishness.

Until such time as earnings growth picks up - and perhaps the Government's decision to loosen its 1% cap on public sector pay rises may speed that process up - the MPC is likely to hold off raising the cost of borrowing.

"The Bank of England faces a dilemma when it meets on Thursday between getting inflation in check and supporting the flagging post-Brexit economy", said Craig Erlam, senior market analyst at Oanda, in a note. Meanwhile, underlying inflationary pressures are building. Effectively, the Bank wanted to prepare the markets for a rate hike in the near-ish future.

Seven in favour of holding policy, two in favour of hiking.

"While no change is expected to monetary policy overall there could be little nuances that might point to a slight shift in tone with respect to the timing of a potential paring back of the current level of monetary easing", says Michael Hewson, chief market analyst at CMC Markets.

Output prices climbed 3.4 percent yearly, faster than the 3.2 percent increase in July.

Excluding energy and food items, the yearly core CPI index jumped by 0.3 percentage points to 2.7%, exceeding the expectations for a rise of 2.5%.

Growth has failed to show any meaningful signs of improvement. Household spending rose just 0.1% in Q2, down from the 0.4% registered in Q1 and well short of the 0.3% forecast.

The number of people in work rose by 181,000 in the three months to April compared with the three months to July, while there were 1.46mn unemployed people - 75,000 fewer than for February to April 2017.

A struggling economy and Brexit fears are offsetting any concerns over target inflation.

Sterling Surges as UK Inflation Jumps Higher
Sterling Surges as UK Inflation Jumps Higher

Using debit or credit cards when overseas means there is no choice over exchange rates until the day you use it.

Other periods of sterling strength since then include: November last year (FTSE -3 percent, MSCI +2 percent); mid-March through end-April this year (FTSE -3 percent, MSCI +1.5 percent); and the last three weeks (FTSE -1 percent, MSCI +2.5 percent).

The scale of the increase, which took the consumer price inflation rate to its joint-highest level in more than five years, was unexpected — the consensus in the markets was for a 2.8 percent rate.

The yearly figure showed that industrial production had increased to 3.2%, however this was slightly below what was expected. The outcome of the meeting is due to be announced at 1100 GMT on Thursday.

"Our own view is that rates won't rise this year or next".

The sterling is up on a surge today, close to a 6-week high against the dollar and is now holding at a one-year high this Wednesday. Inactivity also declined sharply.

The rate that prices are growing now stands at 2.6%, having fallen back a little from its post-Brexit peak of 2.9%. At present there are simply too many unknowns for the Bank to hike to rates.

"We still expect a 7-2 vote for unchanged rates".

"The only unknown remains around the vote of the chief economist Andrew Haldane".

Otras noticias

Tendencias Ahora

Hurricane Irma pummels Florida; 'This one scares me'
More than 3.3 million homes and businesses - and counting - have lost power in Florida as Hurricane Irma moves up the peninsula. A storm surge warning wraps around the Florida coast as concerns over a surge of as much as 15 feet could occur along the coast.

Credit Freeze FAQs | Consumer Information
The company has said the executives were not informed of the breach before selling the securities. Monitor your credit card statements carefully (go online; don't wait for the paper statement).

Super Mario Odyssey Getting A Nintendo Switch Bundle
Balloon Fight, Ice Climber, Pinball and Clu Clu Land are also all coming to the Switch , though no date has yet been set. Most of all because numerous added elements come from that version, which was released previous year on other consoles.

Live streaming free — Liverpool vs Sevilla
Mohamed Salah created a little bit of Champions League history by scoring in Liverpool's opening group game against Sevilla . The match finished 2-2 at Anfield , but that only tells some of the story in a game that had almost everything.

Liverpool's Mane named Premier League Player of the Month
Aguero even passed up one good goalscoring opportunity to lay on Jesus' second of the afternoon. Gabriel Jesus' header added a second goal for City, taking advantage of Liverpool's numbers.

Power Out For More Than 60 Percent Of Florida Homes And Businesses
Only eight of Florida's 67 counties don't have outages reported, according to the Florida Division of Emergency Management. Hurricane Irma after battering Caribbean as well as several areas of Florida , has now weakened into a tropical storm .

Aid agencies must step up 'massively' to help Rohingya Muslims
During his vist to Myanmar Prime Minister Narendra Modi raised the issues if Rohingya Muslims illegally living in India. Myanmar's forces have been attacking Rohingya Muslims and torching their villages in Rakhine State since October 2016.

WATCH: Meet the iPhone X
As the name suggests, Apple TV will now host 4K content, which is something that the competition hasn't managed to offer. You'll be able to edit them in fullscreen, and they'll all be animated in real-time before you send them as a message.

Oil Prices Rise On Huge Draw In Gasoline Stocks
OPEC meanwhile revised upwards its estimate for global oil demand by 1.42 million bpd to 96.77 million bpd this year. Brent crude settled up 43 cents or 0.8 percent to $54.27 per barrel.

Middle-Class Americans Made More In 2016 Than Ever In US History
Yet she added that the census report shows that American households have made significant economic progress in 2015 and 2016. To get a clearer picture of income inequality across USA households, consider adjusting your choice of statistical measures.