The Bank of England's chief economist Andy Haldane has said that there is "no rush" to raise interest rates, as some members of the monetary policy committee appear to be gearing up to vote for a rise next month. Haldane argued that the economy is still healing from the financial crisis, inflation remains extremely low and global risks such as Greece and China remain. Haldane told reporters "For me the combination of a still healing economy, very low price pressures and a wobbly world mean that there's no rush to move rates from where they are right now."
Haldane is thought to be the most dovish member of the rate-setting committee, having said back in June that interest rates were just as likely to fall as rise in the months ahead. The market expects interest rates to rise from a record low 0.5 per cent, which they've been held at for over six years in the first half of 2016, and some analysts say it could be as early as November this year
The Markit Eurozone Purchasing Managers' Index Declined in June to 54.2 from 53.7, the sixth-highest reading since mid-2011.However, the figure represented a two-month low and was slightly lower than the 54.0 reading Analysts had expected. Growth Declined marginally in the manufacturing and services the industries, falling 0.3 to 52.5.
In the US New single-family home sales fell in June to their lowest level in seven months and May's sales were revised sharply lower, in what appeared to be a minor setback for the housing market recovery. Sales declined 6.8 percent to a seasonally adjusted annual rate of 482,000 units, the lowest level since last November. Sales were up 18.1 percent compared to June of last year. Despite two straight months of declines in new home sales, the overall housing market recovery remains intact.
US Manufacturing Purchasing Managers’ Index (PMI) edged up to 53.8 in July from a 20-month low of 53.6 in June. The improvement was largely due to stronger rises in output and new business levels in July. Meanwhile, slowdown in job creation was the main factor weighing on the headline PMI during the latest survey period. The rate of growth in new business pick-up up its fastest for three months.
GBP: 12:30 – US Durable Goods Orders (June) expected to improve to 3.0% from -2.2%