Market insights

UK Inflation Better Than Expected

The UK released its inflation figure this morning.

Annualised growth came in at 2.2% against an expected 2.3%.

This caused an immediate drop in Pound rates.

The Bank of England has a target of 2% inflation, and the current trajectory could see the rate drop below that meaning there's more likely to be further rate cuts this year.

The base rate is the Bank of Englands main lever for controlling inflation.

And it's a massive 24 hours for currency rate news.

European GDP (quarterly growth of 0.3% expected) later in the morning followed by the US inflation number.

The predicted annualised growth of 2.9% will be closely watched as the FED is also expected to cut rates going forward.

If that wasn't enough, throw into the mix Japanese GDP, Australian unemployment and the UK's GDP number out at breakfast tomorrow!

Hang onto your hats and buckle up.

For the UK GDP number it's expected quarterly growth of 0.6% will be reported.

Business news examines the UK inflation number in more detail. Energy prices have propped the number up whilst services prices were overall lower and food prices remained flat.

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Economic calendar

EUR: 10:00 GDP Number

US: 13:30 Inflation Report

JPN: Thursday 00:50 GDP Number

AUS: Thursday 02:30 Unemployment Rate

UK: Thursday 07:00 GDP Report

As ever we look forward to keeping you in the loop and look out for our next update.

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