Growing speculation of UK rate hikes
The tension mounts ahead of the Bank of England rate announcement on Thursday. Sterling has been benefiting from increasing data backed speculation that there will be another rise of 25bp taking base rates in the UK to 5.50%.
Yesterday the UK published figures showing homeowners profiting from soaring house prices to fund consumer spending alongside buoyant conditions in the manufacturing sector.
Equity withdrawal in the quarter rose dramatically to £14.6bn from £12.2bn in the previous three months. Also adding fuel to the fire is the upbeat manufacturing data of late.
The latest purchasing managers' survey of manufacturing showed that over the first quarter as a whole the UK is still experiencing the fastest expansion in British industry for nearly three years, with new orders at their strongest since the end of 1999.
The US also had PMI data out yesterday. US factory activity grew in March but at a slower rate than in February with a jump in prices paid but contraction in employment.
The data suggests moderate manufacturing sector growth while price pressures fuelled by higher energy prices continues unabated. The prices data will provide another indication that the Fed cannot be complacent on the inflation side even with soft growth.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Yesterday the UK published figures showing homeowners profiting from soaring house prices to fund consumer spending alongside buoyant conditions in the manufacturing sector.
Equity withdrawal in the quarter rose dramatically to £14.6bn from £12.2bn in the previous three months. Also adding fuel to the fire is the upbeat manufacturing data of late.
The latest purchasing managers' survey of manufacturing showed that over the first quarter as a whole the UK is still experiencing the fastest expansion in British industry for nearly three years, with new orders at their strongest since the end of 1999.
The US also had PMI data out yesterday. US factory activity grew in March but at a slower rate than in February with a jump in prices paid but contraction in employment.
The data suggests moderate manufacturing sector growth while price pressures fuelled by higher energy prices continues unabated. The prices data will provide another indication that the Fed cannot be complacent on the inflation side even with soft growth.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank-of-England, interest-rates
posted by Wise Money @ 2:44 PM
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