Bank of England Deputy Governor Jon Cunliffe offered no hints on Thursday that he is likely to vote for higher interest rates soon, pointing instead to the central bank's guidance that rates are likely to rise in a gradual and limited fashion. Earlier this month investors were surprised when the Bank's chief economist Andy Haldane joined a minority of officials calling for an immediate rise in rates, boosting the chances of a hike in August. Cunliffe, asked in a BBC radio interview about the prospect that rates could rise from 0.5 percent to 2.5 percent within a couple of years, said: "Financial markets are assuming that interest rates go up by another three-quarters of a percentage point over the next couple of years."
Friday’s session brought UK Current Account figures. The UK’s current account deficit was £17.7 billion (3.4% of gross domestic product (GDP)) in Quarter 1 (Jan to Mar) 2018, a narrowing of £1.8 billion from a revised deficit of £19.5 billion (3.8% of GDP) in Quarter 4 (Oct to Dec) 2017. The UK’s current account deficit narrowed primarily due to a narrowing of both the trade deficit and the primary income deficit, partially offset by a widening of the secondary income deficit in Quarter 1 (Jan to Mar) 2018.
Figures to watch:
Manufacturing PMI (Monday 9:30)
Construction PMI (Tuesday 9:30)
Services PMI (Wednesday 9:30)
