Yesterday the Bank of England warned leaving the European Union could trigger a recession, lead to a jump in inflation, higher unemployment and a “sharp” depreciation in the value of sterling.
Mark Carney issued a hard-hitting analysis of the likely effect of Brexit in the final Super Thursday before the referendum on 23 June and the monetary policy committee (MPC) voted unanimously to maintain interest rates at 0.5 per cent for another month.
The quarterly Inflation Report added: “Households could defer consumption and firms delay investment, lowering labour demand and causing unemployment to rise. Asset prices might fall, leading to tighter financial conditions.
The statement triggered an unprecedented attack by former chancellor of the exchequer, Lord Lamont, who questioned Carney's judgement in wading in to the debate, warning he could be responsible for triggering an economic crisis.
The US jobs figure showed the number of Americans filing for unemployment benefits unexpectedly rose last week to the highest level in more than a year.
Other data also showed import prices increased in April for a second straight month, suggesting that the disinflationary impulse from a strong dollar and lower oil prices, which has helped to hold inflation well below the Federal Reserve's 2 percent target, was fading.
13:30 – USD – Core retail sales is expected to increase to 0.6%
13:30 – USD – Producer Price index is forecast to increase to 0.3%
13:30 – USD – Retail sales remain at -0.3%
15:00 – USD – Preliminary UoM consumer Sentiment is forecast to improve