- In a speech on Sunday, Federal Reserve Governor Michelle Bowman said that she still sees upside risks for inflation and continued strength in the labor market. She said, “The progress in lowering inflation during May and June is a welcome development, but inflation is still uncomfortably above the committee’s 2% goal.” She signalled that she may not be ready to support an interest rate cut in the September policy meeting adding, “I will remain cautious in my approach to considering adjustments to the current stance of policy.”
- Inflation and the outlook for the US economy remain high on the agenda this week as markets eagerly await US PPI and CPI on Tuesday and Wednesday respectively. July Producer Prices are expected to have risen at a similar 0.2% pace as June, however elements of this data that feed into the Fed’s preferred inflation measure, the core PCE deflator will be closely monitored. July’s CPI print is expected to edge lower, with the headline rate expected to dip to 2.9% from 3.0% and to core to reduce to 3.2% from the previous 3.3%.
- It’s a busy week for UK data with analysts looking to see if the BoE can cut rates further over the remainder of the year. The upcoming UK employment data is expected to show pay pressures cooling and a further rise in unemployment. Wednesday’s CPI inflation report is expected to have accelerated, with the BoE pencilling in a reading of 2.4% in its August forecast. Any increase will be driven by a base effect associated with household energy bills. UK GDP is released on Thursday and the week wraps up with Retail Sales on Friday, which should bounce back in July after the unseasonably cool weather in June which hit sales on the High Street.
We are using cookies to give you the best experience on our website. Download the GPS Cookies Policy for more information. The main types of cookies we use are as follows: strictly necessary cookies, performance cookies, advertisement cookies, and analytics cookies. You can find out more about which cookies we are using or switch them off in settings. Except for strictly essential cookies, you have also the option to decline the usage of cookies at any time. You can do this through this cookie management panel, which appears when you first visit, and you can access it independently through the link provided at the foot of the page.