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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
BoE raises key interest rate, increases inflation forecast
The BoE, in its latest monetary policy meeting, increased its benchmark interest rate by 25 basis point to 0.50% from 0.25%, for the second time in three months. Also, the central bank raised its inflation forecast to 7.25% in April from 6% projected in December. Meanwhile, the BoE has decided to start unwinding its £895 billion quantitative easing programme and reduce the stock of UK government bond purchases by ceasing to reinvest maturing assets.
UK Markit services PMI unexpectedly climbed in January
In the UK, the services PMI unexpectedly rose to a level of 54.10 in January, compared to a reading of 53.60 in the previous month. Markets were expecting the services PMI to drop to a level of 53.30.
ECB keeps benchmark interest rate unchanged
The European Central Bank (ECB), in its latest monetary policy meeting, kept its key interest rates unchanged at 0%, as widely expected. ECB President, Christine Lagarde, stated that inflation is likely to remain elevated for longer than previously expected but is expected to decline in the course of this year. Also, she pledged to withdraw the pandemic stimulus gradually.
US ISM services PMI declined less than expected in January
In the US, the services PMI fell to level of 59.90 in January, compared to a revised reading of 62.30 in the previous month. Markets were expecting the index to record a drop of 59.50.
US initial jobless claims fell more than expected in the week ended 28 January 2022
In the US, number of initial jobless claims declined to 238.00 K on a weekly basis in the week ended 28 January 2022, compared to a revised reading of 261.00 K in the previous week. Markets were expecting initial jobless claims to drop to a level of 245.00 K.
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