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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
BoE held key rate at 0.50% ahead of Brexit referendum
The Bank of England’s (BoE) Monetary Policy Committee (MPC) unanimously voted to keep the benchmark interest rate at a record low of 0.5% and made no changes to its £375.00 billion asset-purchase facility. Additionally, the central bank reiterated its warnings about the fallout from a British vote to leave the European Union next week, saying it could harm the global economy and the Pound looked increasingly likely to fall further after an “Out” decision. It added that the referendum uncertainty is already hitting the housing market as Britons put spending decisions on hold. Further, the MPC indicated that it would take ‘whatever action is needed’ following the outcome of the referendum, but warned that in the event of Brexit it would ‘face a trade-off between stabilising inflation on the one hand and output and employment on the other’.
UK retail sales rose more than expected in May
In May, on a monthly basis, retail sales climbed 0.90% in the UK, compared to a revised advance of 1.90% in the prior month. Market expectation was for retail sales to rise 0.20%.
UK retail sales rose more than expected in May
On an annual basis, in May, retail sales registered a rise of 6.00% in the UK, higher than market expectations for an advance of 3.90%. Retail sales had climbed by a revised 5.20% in the prior month.
Euro-zone CPI advanced more than expected in May
On a MoM basis, the consumer price index (CPI) in the Euro-zone recorded a rise of 0.40% in May, compared to an unchanged reading in the prior month. Market anticipation was for the CPI to rise 0.30%.
Euro-zone core CPI advanced as expected in May
The final core CPI rose 0.80% on a YoY basis in May, in the Euro-zone, at par with market expectations. In the prior month, the core consumer price index had risen 0.70%. The preliminary figures had also indicated an advance of 0.80%.
Euro-zone CPI fell as expected in May
In May, on a YoY basis, the final CPI eased 0.10% in the Eurozone, compared to a fall of 0.20% in the previous month. Markets were expecting the CPI to ease 0.10%. The preliminary figures had also recorded a fall of 0.10%.
SNB kept interest rate on hold
The Swiss National Bank (SNB) held the key deposit rate steady at -0.75%, as widely expected. The SNB Chairman, Thomas Jordan, reiterated the central bank’s willingness to intervene in the currency markets to keep the Swiss Franc in check. Further, the SNB upgraded its consumer price forecast for this year, and now expects a decline of 0.4% compared with an expectation of a 0.8% drop at its last meeting in March. It expects 0.3% inflation in 2017 and 0.9% in 2018.
US current account deficit rose in 1Q 2016
The US has reported current account deficit of $124.70 billion in 1Q 2016, from a revised current account deficit of $113.40 billion in the previous quarter. Markets were anticipating the nation to post a current account deficit of $125.00 billion.
US CPI advanced less than expected in May
On a monthly basis, the CPI advanced 0.20% in May, in the US, compared to an advance of 0.40% in the prior month. Markets were expecting the CPI to rise 0.30%.
US core CPI advanced in May
The seasonally adjusted core CPI in the US recorded a rise to 247.07 in May, compared to a level of 246.57 in the previous month. Market anticipation was for the core CPI to rise to a level of 247.05.
US Philadelphia Fed manufacturing index advanced in June
In the US, Philadelphia Fed manufacturing index rose to a level of 4.70 in June, higher than market expectations of an advance to 1.00. Philadelphia Fed manufacturing index had registered a level of -1.80 in the prior month.
US CPI advanced in May
In the US, the non-seasonally adjusted CPI registered a rise to 240.24 in May, compared to market expectations of a rise to 240.35. The CPI had registered a reading of 239.26 in the previous month.
US CPI (ex-food & energy) advanced as expected in May
On a MoM basis, the CPI (ex-food & energy) in the US rose 0.20% in May, meeting market expectations. The CPI (ex-food & energy) had registered a similar rise in the previous month.
US continuing jobless claims recorded a rise in the last week
In the week ended 04 June 2016, the seasonally adjusted continuing jobless claims climbed to 2157.00 K in the US, compared to market expectations of a rise to 2140.00 K. Continuing jobless claims had registered a revised level of 2112.00 K in the previous week.
US initial jobless claims advanced in the last week
The seasonally adjusted initial jobless claims recorded a rise to 277.00 K in the week ended 11 June 2016, in the US, compared to a level of 264.00 K in the prior week. Market expectation was for initial jobless claims to rise to a level of 270.00 K.
US CPI (ex-food & energy) rose as expected in May
On an annual basis, the CPI (ex-food & energy) rose 2.20% in the US, in May, at par with market expectations. The CPI (ex-food & energy) had risen 2.10% in the prior month.
US housing market index climbed in June
In the US, the housing market index rose to a level of 60.00 in June, compared to a level of 58.00 in the previous month. Markets were anticipating the housing market index to rise to 59.00.
US CPI advanced less than expected in May
In May, the CPI in the US climbed 1.00% on an annual basis, compared to an advance of 1.10% in the prior month. Market expectation was for the CPI to climb 1.10%.
Canadian investors remained net buyers of foreign securities in the previous month
Canadian investors were net buyers of C$4.67 billion worth of foreign securities in April, as compared to being net buyers of C$2.27 billion worth of foreign securities in the prior month.
Foreign investors remained net buyers of Canadian securities in the previous month
Foreign investors were net buyers of C$15.52 billion worth of Canadian securities in April, from being net buyers of a revised C$17.05 billion worth of Canadian securities in the previous month.
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