There was a quiet start to the week as there is no high tier data on the economic docket. Two members of the Bank of England spoke yesterday. Monetary Policy Committee spoke at the Resolution Foundation; Gertain Vleighe spoke about household debt. Ian McCafferty discussed the economic outlook and monetary policy in an interview conducted by Iain Dale.
The latest UK CPI figure was released this morning and remained steady at 3%, beating the markets expectations. The increase in prices of recreational and cultural goods and services counteracted the downward contribution from motor fuels. The bullish figure will provide further support for the Bank of England to raise rates quicker than they originally planned. The BOE hinted last week, they could be tempted to change their original rate hike plans, with the first one being predicted for May instead of November as originally planned.
German Chancellor, Angela Merkel could be faced with some good news as the Social Democrats, which she has recently agreed a coalition with, are set to appoint a pro-coalition acting chairwoman, Andrea Nahles. Nahles will be trying to persuade the 460,000 members of the SPD party to support the coalition in the March vote, giving Merkel her fourth term as German Chancellor. However, it is expected the vote could be close, as the party remain divided over whether to go into coalition with Merkel.
Across the pond, FOMC member Loretta Mester will be speaking at the Dayton Area Chamber of Commerce Government Affairs Breakfast on the economic outlook and monetary policy.