Janet Mui: weekly economic update 3 May

Looking back on a busy week of economic data and central bank decision-making

02/05/2019
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Authors

Janet Mui
Global Economist, Cazenove Capital

Eurozone growth exceeds expectations

Eurozone growth for the first quarter of 2019 came in at +0.4% quarter-on-quarter, better than the expected +0.3%. But current and leading indicators suggest ongoing weakness, especially in the manufacturing sector.

Bank of England keeps rates on hold...

As widely expected, the Bank kept the UK's leading interest rate at 0.75% in its May meeting. It increased the growth forecast from 1.2% to 1.5% for the year and expects the unemployment rate to fall to 3.5%. The market is not anticipating a rate increase in the near future, and any action the Monetary Policy Committee takes is likely to rest on Brexit developments.

...as does the Federal Reserve's Open Market Committee

The FOMC reinforced its “patient” stance. But its statement suggested that currently falling inflation could be attributable to transitory factors and that price growth would return to the 2% level.

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Authors

Janet Mui
Global Economist, Cazenove Capital

Topics

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at IFC1, Esplanade, St Helier, Jersey, JE2 3BX, (No.31076).

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