UK: Carney to draw attention today - Rabobank

In the UK, public sector borrowing data along with CBI selling prices survey will be released and in addition, another round of Brexit negotiations is also due to start in Brussels and Governor Carney will testify before the parliament’s Treasury Committee, points out the research team at Rabobank.

Key Quotes

“It has not been an easy few months for the Bank of England’s MPC. Having signaled in February that “monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent”, policy makers had to retreat to a more cautious position in May after a spate of disappointing UK economic data. While economists still see scope for a rate hike in August, the money market is yet to be convinced, but almost everyone would agree that better data is needed before the MPC can act on policy.”

“Today, Governor Carney along with his fellow MPC members Ramsden, Saunders and Vlieghe will be present at a parliamentary hearing. Some questions on the Bank’s communications strategy are likely, but ahead of a week that contains key data on UK CPI inflation and retail sales, the market will be watching for any signs that strengthen the case for an August rate rise.”