The BoE also lowered its forecasts for UK economic growth last quarter and this quarter by 0.1 percentage points to 0.5 per cent after data showed the manufacturing sector had shrunk by 1.2 per cent annually.
Policymakers said the recent oil price fall would weigh slightly on inflation in the coming months, which is currently 0.1 per cent, sitting well below the Bank’s target of two per cent. Oil prices have fallen nearly 70 per cent since June 2014, and yesterday Brent, the global benchmark, slipped under $30 per barrel.
Concerns that a slowdown in China and other emerging economies will limit prospects for US growth have roiled equity markets and may make some employers more cautious about their staffing levels. A sustained pickup in the pace of dismissals that takes claims well above 300,000 will probably be needed to confirm demand for workers is waning.
13:30 – USD - Core Retail Sales expected to decline to 0.2%
13:30 – USD - Retail Sales expected to decline to -0.1%
13:30 – USD - Producer Price Index expected to decline to -0.2%