Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
UK inflation data offered not relief for embattled Bank of England rate setters, as core inflation accelerated further and the headline number was unchanged on the higher-than-expected April outturn. The headline rate was again at 8.7%, outpacing both analyst and BOE forecasts, while core rose to 7.1%, beating the expected 6.8%.
The MPC meet Wednesday to decide the next move on interest rates and while a 25bps hike to 4.75% remains the most likely outcome, the chances now increase that a stronger argument will be made by the hawks for a return to 50bps increments.
Although there was little good news in the inflation data published by the Office for National Statistics, with service sector increases rising 7.4% y/y, the fastest pace since March 1992, the Bank could point to slower PPI and a modest decrease in food inflation. However, there was little for the doves to argue again against higher rates.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.