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 slowed in November, offering some ammunition for Bank of England doves on the day they decide the next move for monetary policy. However, with inflation still above 10%, there is still plenty for the more hawkish members of the Monetary Policy Committee to hang their hats on, particularly with services CPI still at a 30-year high.
The annual rate of CPI slowed to 10.7% in November, down from 11.1% in October, a level the BOE had forecast as the peak, with the monthly rate slowing to 0.4%. Core inflation also saw some deceleration in the annual rate, dipping to 6.3% y/y, the Office for National Statistics said, upsetting analysts forecasts for a modest increase to 6.6%.
“Although still at historically high levels, annual inflation eased slightly in November. Prices are still rising, but by less than this time last year with the most notable example of this being motor fuels," ONS Chief Economist Grant Fitzner said.
The Bank's MPC votes later Wednesday on interest rate policy, with the decision to be announced at midday Thursday. Expectations are for a rise of 50bps to 3.5%, although forecasts suggest a range of individual voting outcomes of members from unchanged through to a 75bps hike. (MNI BOE WATCH: MPC To Split, Likely Opt For 50bps Hike)
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.