Bank chief economist surprises with interest-rate vote

Bank chief economist surprises with interest-rate vote

The Bank of England has held interest rate at 0.5% after the Monetary Policy Committee voted 6-3 in favour of no rise on Thursday.

"These members also felt that the benefits of waiting for additional information were limited", it showed. "If sterling continues to depreciate and wage increases lead to higher prices, there will be pressure for interest rates to rise higher and faster than markets now expect". It's first time Haldane has dissented since joining the panel in 2014.

The pound jumped by about a cent against the dollar following the Bank's decision, climbing back above the $1.32 level, as the possibility of an August rate rise appeared to increase.

If the economy is turning the corner, the idea of an August rate increase could be on the table.

Wage growth has been solid if unspectacular, and May retail sales were strong, reflecting sunny weather, a royal wedding and a partial easing of the inflation pressure that has squeezed British consumer demand since June 2016's Brexit vote.

Ed Monk, associate director for personal investing at Fidelity International, said: "A majority of economists expect a rise in August and there was nothing in the Bank's comment today to dissuade them". A putative May rate rise was thrown off course by an unusually harsh winter - and a possible underlying slowdown - that led to the economy nearly stagnating from January to March. However, there's no rush to raise rates this week given the high political and economic uncertainty'.

Supreme Court ruling says states can now tax online purchases
In addition to being a win for states, the ruling is a win for large retailers, who argued the physical presence rule was unfair. The court gave South Dakota a victory, knocking aside the physical-presence rule as arbitrary and obsolete in the digital age.

Bank of England Governor Mark Carney said Treasury's GBP 1.2 billion capital injection announcement is a ground-breaking financial arrangement and this would make the balance sheet fit for objective and the future. The £5bn is the lowest figure for any May on record since 2005. Today's GBP/USD trading range is 1.310 - 1.3470.

'The accepted criteria for all sides is that this solution be convincing for markets and embed the creditworthiness of our country - the final act in restoring the credibility of Greece to be able to plan for the next day like any ordinary country.'
Unsurprisingly, the pound rallied from oversold conditions and continues to make gains today.

Trade concerns exist outside Britain too.

EURUSD - while above the May lows at 1.1520 as well as trend line support from the 2017 lows, we remain at risk for a rebound back towards the 1.1720/30 area, with resistance also at 1.1640.

If all banks are reported to have passed this year's tests, the USA dollar could rise further against the pound as United States dollar investors become more confident.

Related Articles

  • MoviePass is going to introduce surge pricing on popular movies by July

    MoviePass is going to introduce surge pricing on popular movies by July

    With AMC Stubs, moviegoers can reserve tickets for upcoming movies on their phone, but MoviePass is same day only. Advance reservations can be held for a maximum of 3 movies at any one time in the current or for future weeks.
    England v Australia at the Emirates Riverside, Chester-le-Street

    England v Australia at the Emirates Riverside, Chester-le-Street

    It´s not an excuse but they ( England ) are the best side in the world and they are really hard to beat". If Australia had any reason to be optimistic between innings, the illusion was brutally short-lived.
    Messi is no Ronaldo, France legend slams Argentina captain

    Messi is no Ronaldo, France legend slams Argentina captain

    I think it's unusual because he is a very important player in the national team and he had little involvement, which is odd . Ante Rebic, Luka Modric and Ivan Rakitic scored the three goals that condemned Argentina to a defeat against Croatia.
  • Spider-Man Spinoff Silk In Development At Sony

    Spider-Man Spinoff Silk In Development At Sony

    Better get your passport renewed, Pete. "So yeah, Spider-Man 2, let's do this". Spider-Man: Far From Home is scheduled to premiere on July 5, 2019.
    Nick Kyrgios simulates sex act during Queen’s Club loss to Marin Cilic

    Nick Kyrgios simulates sex act during Queen’s Club loss to Marin Cilic

    Do you swear? Do you swear? When the reporter replied that he had been known to, Kyrgios dismissively responded: "Okay, great". Now the former US Open champion is hoping to go one better after losing the Queen's final to Feliciano Lopez 12 months ago.
    Fortnite Updates Will Make Victory Less About The

    Fortnite Updates Will Make Victory Less About The "Just Build lol" Strategy

    In a post on the Fortnite blog, Epic addressed some aspects of the Fortnite metagame that have become a bit of a running joke . According to Epic most tactics now rely on the use of shotguns, rockets, and " just build lol ", which we can't disagree with.
  • Hamilton hottest again in eventful second practice

    Hamilton hottest again in eventful second practice

    The Finn quickly caught the Australian and after swarming all over the Red Bull's gearbox, he pulled the trigger into the chicane. Mercedes brought an upgraded power unit to Le Castellet and Hamilton, who has yet to win in France, has been consistently quick.
    Game of Thrones Star Kit Harington Marries Rose Leslie

    Game of Thrones Star Kit Harington Marries Rose Leslie

    As they left from the wedding venue, they were cheered and showered with flower petal confetti by guests who had lined up. The wedding date had previously been posted at Aberdeenshire's Huntly register office.
    Little to celebrate as Saudi women see end to driving ban

    Little to celebrate as Saudi women see end to driving ban

    After the order was issued to lift the driving ban, she wrote, "The way in which the ban was lifted seemed too simple to be real". And Mr Gasnier says that the "very difficult" conditions that blighted Saudi Arabia in 2017 have continued into this year.
  • Apple Finally Addresses MacBook Keyboard Issue With Free Repairs

    Apple says customers who have one of the affected laptops and already paid for a fix can contact the company for a refund. Apple posted special cleaning instructions for laptops with butterfly key switches in 2017, but no other information.
    German chancellor says migration meeting a 'first exchange'

    German chancellor says migration meeting a 'first exchange'

    Italy and Malta refused to take in the ship which was stranded at sea for days before being offered safe haven in Spain . The Libyan navy said five people died and almost 200 were rescued off its coast while trying to cross the Mediterranean.
    Donald Trump Just Told Republicans To Back Off Immigration Reform - For Now

    Donald Trump Just Told Republicans To Back Off Immigration Reform - For Now

    About 9,000 such family units have been caught in each of the last three months, according to U.S. border authorities. Some 2,300 children were taken from their parents since May under the Trump administration's "zero-tolerance" policy.