British government borrowing rose more than 10 percent in the first half of the financial year, giving Chancellor George Osborne little scope to offer sweeteners to voters before a parliamentary election in May. The Office for National Statistics reported that the UK borrowed £11.8bn in September, which is 15% or £1.6bn more than this time a year ago.
Britain's economy has staged a stronger-than-expected recovery since the middle of 2013. But that has not yet translated into a big increase in tax revenues, in large part because slow wage growth has kept a lid on income tax receipts.
Yesterday The European Central Bank is considering buying corporate bonds on the secondary market. Essentially this will help large European corporate companies gain greater access to financing thus allowing them to grow their operations which will help encourage growth and stimulate the ailing European Economy.
In the US, existing home sales hit a one year high in September, indicating a continuing recovery in the housing market. According to the National Association of Realtor's, sales rose 2.4% to an annual rate of 5.17M units, compared to forecasts of 5.10M, up from August’s 5.05m. Growth in the labour market and falling mortgage rates are helping underpin demand and providing a buffer for the US economy as global markets begin to slow.
Easier lending standards and faster wage growth would attract more buyers, including those making their first step into home ownership
09:30 BST: GBP - Bank of England Rate change votes expected to be unchanged at 7-2 in favour of reaming unchanged.
13:30 BST: USD – US Consumer Price Index (Sept) expected to fall from 1.7 to 1.6%
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