No Rate Hike From the BOE Then
Ok, the UK retail sales just got published and it´s not good. As we mentioned in the previous update, expectations were for a 0.9% jump in the January numbers, but the ONS report showed a 0.3% decline.
Now retail sales are always volatile, but this January in particular is more volatile and unexpected than the rest. After Christmas and the winter holidays, you don´t really know what to expect, especially with weather conditions too.
The yearly number took a big dive as well.
However, it´s a bad number nonetheless and coming after another negative number (decline in the wages), it makes you wonder.
The biggest worry here comes from what the ONS (surveying firm) said about this report. They said that consumers are being put off by high prices, which is a very big warning sign for what´s to come.
GBP has tumbled 100 pips lower and I don´t blame it. The BOE (Bank of England) talked about rate hikes in the last meeting, but I don´t see them even thinking about it now after the negative numbers of the last few days.
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