In a unanimous vote, the Bank of England has left its monetary policy unchanged as had been widely expected. But the focus was always going to be on the Inflation Report and the minutes, and Mark Carney’s press conference. In the Inflation Report, there were a few surprises as the Bank said some of the monetary policy committee members had signalled increased concerns about inflation and that the stronger GDP made it harder to tolerate above-forecast CPI.
The euro slipped to a 11-day low against the dollar on Monday after German inflation data came in slightly weaker than expected, which took some pressure off the European Central Bank to wind down its stimulus program.
The U.S.-based equity markets are pointing to a lower open this morning. Asian markets closed mostly lower in the overnight session as celebrations of the Lunar New Year continue. European markets are mostly lower heading into the afternoon session.
U.S. economic growth slowed sharply in the fourth quarter as a plunge in shipments of soybeans weighed on exports, but steady consumer spending and rising business investment suggested the economy would continue to expand.
This morning’s GDP and Durable Goods figures will be a focus for economists as an indications of growth follow through from last quarter and provide greater color for the next FOMC meeting and the impact on rate hike scheduling.
And like that, it happened. Despite the polls, despite what anyone believed was possible, including many of his own supporters, billionaire developer Donald J. Trump was sworn in as the 45th President of the United States.