Thomas Watts, Investment Analyst, abrdn MPS, comments on the economic data releases this week;
“The main talking points of the week are to be found in Europe on Thursday as the European Central Bank (ECB)makes its latest decision on rate policy. Although the ECB will not want its June rate cut to look like a policy mistake, it seems as if the move last month will not be repeated in the face of resilient labour markets and tepid growth, with many economists believing that we should expect the bank to stand firm. Although the announcement will not be considered a complete non-event, as many will be scrutinising the accompanying press conference for any new future rate guidance.
The talk of central bank reticence to cut rates just yet could also bleed into domestic debates this week as the Office for National Statistics releases its latest inflation reading for the UK. With a string of Bank of England officials announcing a wait and see approach last week, the upcoming reading does take on added significance and could have a major influence if the bank does decide to move on borrowing costs in the next few months. The data itself will measure the change in the price of goods and services purchased by consumers and is often regarded as a vital piece of information by both investors and those on Threadneedle Street.”
