Wise Money reflects on UK loans rates
As this was a quiet trading period in Europe due to the extended bank holiday there is not much to report, however as people prepared to close down for the approaching Easter weekend on Thursday last week, the Bank of England announced that it would keep base rates on hold at 5.25% for the third consecutive month.
Attention will now turn to the minutes which are due on 18th April for any indication of when rates are next to due to go up, with many commentators expecting a possible rate hike in May.
A close eye will also be kept on retail sales data released by the British retail consortium this week which may add fuel to fire for those on the MPC wanting a hike in rates with more relevance on the PPI and CPI data out early next week.
Across the water the US dollar weakened due to a number of reasons, specifically the concerns over the US-China trade tensions, the strength of the Australian dollar which was backed by a strong NAB survey and ANZ job data and the on-going concern with the sub-prime mortgage sector.
The short fall in substantial economic data apart from the solid data out last Friday showing stronger than expected job creation and stronger-than-expected non-farm payrolls data will have helped limit the dollars weakness where it seemed market participants were reacting to the slightest noise created.
In the commodity markets the recent drop in oil prices due to the easing of tensions between the UK and Iran is also a story worth keeping an eye on because the impact oil has on the state of the US economy.
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.
Attention will now turn to the minutes which are due on 18th April for any indication of when rates are next to due to go up, with many commentators expecting a possible rate hike in May.
A close eye will also be kept on retail sales data released by the British retail consortium this week which may add fuel to fire for those on the MPC wanting a hike in rates with more relevance on the PPI and CPI data out early next week.
Across the water the US dollar weakened due to a number of reasons, specifically the concerns over the US-China trade tensions, the strength of the Australian dollar which was backed by a strong NAB survey and ANZ job data and the on-going concern with the sub-prime mortgage sector.
The short fall in substantial economic data apart from the solid data out last Friday showing stronger than expected job creation and stronger-than-expected non-farm payrolls data will have helped limit the dollars weakness where it seemed market participants were reacting to the slightest noise created.
In the commodity markets the recent drop in oil prices due to the easing of tensions between the UK and Iran is also a story worth keeping an eye on because the impact oil has on the state of the US economy.
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
posted by Wise Money @ 3:29 PM
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