A surprise drop in U.K. inflation to the lowest level in five years may give Mark Carney scope to keep interest rates at a record low for longer.
The rate of consumer-price growth declined in September to 1.2 percent, the least since 2009, as falling oil prices and a stronger pound lowered the cost of imports. The report from the Office for National Statistics underscores the case for the Bank of England governor to maintain emergency policy settings as a deterioration in the euro-area economy threatens the U.K.’s expansion.
Officials left their benchmark at 0.5 percent this month and Carney said yesterday that “a benign global inflationary environment” would be a key factor for the path of policy. Sterling, which has appreciated nearly 7 percent in the past year, slipped as investors bet the data will support rates being left on hold further into next year.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.