Events that marked the week:
Wednesday's session was marked by UK job figures. For February 2016 there were 716,700 people claiming unemployment related benefits.This was 18,000 fewer than for January 2016 and 102,500 fewer than for a year earlier and also the lowest since April 1975. Analysts were forecasting decrease by 8,800. Average weekly earnings for employees in Great Britain increased by 2.1% including bonuses and by 2.2% excluding bonuses compared with a year earlier. The unemployment rate was 5.1%, lower than for a year earlier (5.7%). This was in line with market expectations.
Focus of the Thursday's session was on BoE's rate decision and the following Minutes. Bank of England left
interest rates on hold and warned that rising uncertainty over Brexit could hit the economy.
The BoE’s monetary policy committee voted unanimously to leave borrowing costs at their current record low of 0.5%, extending a run dating back to March 2009. Policymakers also voted 9-0 to leave the Bank’s quantitative easing program unchanged at £375 billion.
In its meeting minutes, the BoE noted that rising uncertainty over a possible British exit from the European Union in the upcoming referendum on June 23 could hit economic demand. “There appears to be increased uncertainty surrounding the forthcoming referendum on UK membership of the European Union. That uncertainty is likely to have been a significant driver of the decline in sterling,” the minutes said.
This week markets will be looking at:
CPI/PPI Input (Tuesday 10:30)
Retail Sales (Thursday 10:30)