020 7898 0500It was a fairly quiet day for UK economic data on Monday, although speculation that the CPI could hit 3% – or even 3.1% – heaps pressure on BoE Governor Carney and the rest of the Monetary Policy Committee to increase interest rates in November. Not everyone believes this would be the right course of action, so it will be interesting to hear Carney’s thoughts when he appears before the Commons Treasury select committee this morning.
Meanwhile, Theresa May met with Jean-Claude Juncker last night to discuss Brexit after having a telephone call with Emmanuel Macron. In the release of the read-out of the call nothing particularly new was revealed, although the fact these conversations are taking place points to a different strategy to achieve progress.
The aforementioned CPI data is the main talking point today and, should it come in as expected, there will be increased speculation of an imminent interest rate rise. As a result, we could see some sterling strengthening.
