The case for raising
The precise timing of the rate hike would depend on the outlook for inflation. That, in turn, would depend on the data flow, and in particular what that implied for the degree of slack, the prospects for its absorption, and the broader outlook for wages.
At the meeting, the MPC voted to retain the record low 0.50% interest rate and quantitative easing at
The pound that spiked up to 5-1/2-month high of 173.78 against the yen retreated to 173.09 in a short while. The pair was worth 173.20 at yesterday's close. On the downside, 172.00 is seen as next support level for the pound.
That beat expectations for a shortfall of
The pound declined to a 5-day low of 1.6933 against the greenback, reversing from its recent 2-day high of 1.7001. The next possible downside target for the pound lies around the 1.685 mark. The pound-greenback pair finished yesterday's trading at 1.6963.
The pound eased to 1.5227 against the franc, coming off from a 2-day high of 1.5287 hit shortly ago. The pound may challenge support around the 1.51 level. At Tuesday's close, the pound-franc pair was worth 1.5248.
The pound fell to 0.8002 against the euro, after having advanced to a 2-day high of 0.7968 immediately after the release. Next likely support for the pound is seen at the 0.81 region. The pair was valued at 0.7983 when it ended deals yesterday.
The Eurozone construction sector recovered in April after contracting in March, Eurostat reported today.
Construction output rose 0.8% in April from March, when it was down 0.3%. The increase was driven by a 1% rise in building output, while civil engineering posted a 0.9% fall.
Looking ahead, the Federal Reserve will announce monetary policy decision at
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