020 7898 0500New car sales in the UK in April surged by 10.4% compared with the same month last year, but there were reasons for this which dampened the release somewhat. The weather in March pushed some deliveries into the following month, while the two extra selling days this April won’t have done the figures any harm. The pound was rather subdued following the release and ended the day weakening against the euro and dollar.
Today we will see the Halifax house prices for April, which are expected to jump from 2.8% year-on-year in March to 3.3% in April. On a month-by-month basis, they are expected to fall from 1.5% to 0.2%. However, such releases are small fry compared with the main highlight of the week, namely, the Bank of England’s interest rate decision on Thursday.
It seems now virtually certain that rates will be kept on hold this time around, but it will be fascinating to see what Governor Mark Carney and his colleagues say in the accompanying meeting. Hints on when we can expect rate hikes could affect sterling movements, with HSBC stating that it doesn’t believe there will be any increases in 2018 or 2019.
