Solid U.K. PMIs Boost Chance of Bank of England November Hike
Dow Jones10-23 20:30
1230 GMT - The U.K.'s composite PMI rose to its highest level in October since the Iran war started, indicating the economy is still weathering higher energy and borrowing costs well, Capital Economics' Paul Dales says in a note. "This will further embolden the Bank of England to raise interest rates from 3.75% to 4.00% at its meeting on Nov. 5 and probably to 4.25% before too long," he says. The reading is consistent with what is shaping up to be a 0.7% quarterly rise in third-quarter GDP being followed by a 0.3%-0.4% gain in the fourth quarter, Dales says. Actual GDP growth has recently been stronger than PMIs suggested, though it excludes the retail sector, which data on Friday showed is weakening, he says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments