The release of inflation and wage growth figures over the past couple of days and the mixed reaction to them have added to an increasingly complex macro picture in the United Kingdom and made it more difficult for investors to make accurate calls on future numbers and policy decisions.
A surprisingly large rise in inflation has increased pressure on Mark Carney and the Bank of Englands monetary policy committee as they continue to walk a rate rise tightrope.
According to the Office of National Statistics consumer inflation fell in the year to May to 1.5%, down from 1.8% in April.
Periodic mini-crises have forced central banks to take aggressive action to shore up their currencies, often at the expense of the outlook for domestic growth, writes Threadneedle’s Mark Burgess.
According to the Office for National Statistics UK inflation rose from 1.6% in March to 1.8% in April.
Markets appear to have run ahead of the Bank of England on the evidence of its inflation report news conference
According to the Bank of England, when it does start raising rates they will do so only gradually.
New survey highlights big differences in inflation fears across countries.
The continuation and intensification of ultra-low interest rates has amplified the chance of capital misallocation with central banks one accident away from a wave of inflation, according to Ruffers Steve Russell.
Inflation linker investors shouldnt fear the end of QE
A change in forward guidance blurs policy measures in the Inflation Report released by the Bank of England today.
Some emerging markets have found themselves wobbling in recent weeks‚ following a long period of hitching themselves to the loose monetary policy of the Federal Reserve. They face the choice of hanging on (by raising rates) or letting go (allowing their currency to depreciate) but neither of these options will be pain-free.
