BOE expected to keep rates at multi-year low
To describe the past week as eventful would be an understatement. It was widely tagged by most economists and politicians alike as a historic week where the world's 20 most powerful countries, the G20, laid down some essential groundwork for a hopeful...
To describe the past week as eventful would be an understatement. It was widely tagged by most economists and politicians alike as a historic week where the world's 20 most powerful countries, the G20, laid down some essential groundwork for a hopeful economic recovery. In the aftermath of such a week, most economic data will look somewhat trivial.
The main economic event in the UK will be the Bank of England (BOE)'s decision regarding the interest rate. However, it should not cause any surprises, as most markets are expecting the BOE to stay on hold.
In the meantime, the UK's PPI will also be released and like that of the Eurozone it is expected to be heading south.
Likewise, the prediction is that industrial production figures for 2008 will register a 12.4 per cent drop compare to the previous year.
The Eurozone's week will kick-start with the Producer price inflation (PPI), with so-called factory gate inflation expected to keep falling.
At the same time, retail sales data for February will be released, and January's positive figures is expected to be reversed from +0.1 per cent to -0.3 per cent.
Seasonally adjusted Gross Domestic Product (GDP) is scheduled to be released midway through the week, and no revisions are expected for the previously announced fourth quarter GDP figures.
In the US, no significant data is expected at the start of the week. Consumer confidence survey and MBA Mortgage application should hit the wires on Wednesday.
The week will wrap up with the import price index for March where further weakness is expected on the back of a weaker dollar and deteriorating domestic demand.
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