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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
BoE left benchmark interest rate unchanged
The BoE policymakers unanimously voted to keep key interest rate steady at 0.50% and maintained quantitative easing at £375 billion. In the monetary policy summary that accompanied the decision, the BoE stepped up its warnings about the economic risks if Britain votes to leave the European Union (EU), indicating that the sterling could fall sharply and unemployment would probably rise. Further, the BoE Governor, Mark Carney, cautioned that the risks of a vote to leave the EU “could possibly lead to a technical recession in the UK”. In its quarterly inflation report, published simultaneously with the rate decision, the central bank cut its growth forecast for this year to 2.0% from 2.2% in February, reflecting how uncertainty about the referendum is already weighing on the economy.
Euro-zone industrial production surprisingly eased in March
In the Euro-zone, the seasonally adjusted industrial production unexpectedly eased 0.80% on a monthly basis in March, compared to a revised drop of 1.20% in the previous month. Markets were anticipating industrial production to remain unchanged.
French EU normalised CPI index advanced as expected in April
On a MoM basis, in France, the final EU normalised consumer price index (CPI) advanced 0.10% in April, in line with market expectations. The preliminary figures had also recorded a rise of 0.10%. In the prior month, EU normalised CPI index had recorded a rise of 0.80%.
French CPI (ex-tobacco) advanced as expected in April
The final CPI (ex-tobacco) in France rose 0.10% in April on a monthly basis, in line with market expectations. In the previous month, the CPI (ex-tobacco) had climbed 0.70%. The preliminary figures had also indicated an advance of 0.10%.
Fed’s George says interest rates are too low for current US economic conditions
The Federal Reserve (Fed) Bank of Kansas City President, Esther George, a voting member of the Fed’s policy committee, stated that interest rates are too low for the current US economy and urged the central bank to increase its target interest rate in order to minimize distortions in the economy that can build over many years when rates are held low for long. She viewed the US labor market as “at or near full employment” with inflation “close to the FOMC’s target of 2%”.
US continuing jobless claims recorded an unexpected rise in the last week
The seasonally adjusted continuing jobless claims registered an unexpected rise to 2161.00 K in the US, in the week ended 30 April 2016, compared to a revised level of 2124.00 K in the previous week. Markets were expecting continuing jobless claims to fall to a level of 2120.00 K.
US import price index declined more than expected in April
On an annual basis, the import price index in the US slid 5.70% in April, higher than market expectations for a fall of 5.40%. In the prior month, the import price index had fallen by a revised 6.10%.
US import price index advanced less than expected in April
The import price index advanced 0.30% on a monthly basis in April, in the US, less than market expectations for an advance of 0.60%. In the prior month, the import price index had registered a revised similar rise.
US initial jobless claims rose surprisingly in the last week
The seasonally adjusted initial jobless claims advanced unexpectedly to a level of 294.00 K in the US, in the week ended 07 May 2016, higher than market expectations of a fall to 270.00 K. Initial jobless claims had recorded a level of 274.00 K in the previous week.
Canadian house price index registered a rise in April
In April, on a monthly basis, the house price index registered a rise of 1.20% in Canada. In the previous month, the house price index had climbed 0.80%.
Canadian new housing price index rose more than expected in March
In March, the new housing price index rose 2.00% in Canada on a YoY basis, compared to a rise of 1.80% in the prior month. Markets were anticipating the new housing price index to climb 1.90%.
Canadian new housing price index advanced more than expected in March
The new housing price index registered a rise of 0.20% on a MoM basis in Canada, in March, higher than market expectations for an advance of 0.10%. In the prior month, the new housing price index had registered a similar rise.
Japanese corporate bankruptcies registered a drop in April
On an annual basis, corporate bankruptcies in Japan registered a drop of 7.08% in April. In the previous month, corporate bankruptcies had dropped 13.15%.
Japanese Eco Watchers Survey for future outlook declined in April
Eco Watchers Survey for the future outlook in Japan eased to 45.50 in April, compared to a level of 46.70 in the previous month. Markets were anticipating Eco Watchers Survey for the future outlook to ease to a level of 46.20.
Japanese M3 money supply rose more than expected in April
On an annual basis in Japan, M3 money supply climbed 2.70% in April, higher than market expectations for an advance of 2.60%. In the previous month, M3 money supply had advanced 2.60%.
Japanese Eco Watchers Survey for current situation registered a drop in April
In Japan, Eco Watchers Survey for the current situation recorded a drop to 43.50 in April, lower than market expectations of a drop to a level of 44.00. In the prior month, Eco Watchers Survey for the current situation had recorded a level of 45.40.
Japanese money supply M2+CD rose more than expected in April
On a YoY basis, in April, money supply M2+CD rose 3.30% in Japan, higher than market expectations for an advance of 3.20%. In the prior month, money supply M2+CD had climbed 3.20%.
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