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Japanese Inflation Up For 3rd Month In Row

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"The central bank has been preparing financial markets for an end to this almost five-year-old current ultra-loose monetary policy sometime within the next few months, and most analysts expect a move by April.

Some investors are even betting that the cash tap will be tightened as early as Thursday of next week when central bank policymakers meet. However, most economists think the central bank will wait until next month - after the end of the current fiscal year - when it has two monetary policy meetings scheduled, on April 10-11 and April 28. "

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Over in the UK, gilts were dealt a blow by an unexpectedly strong service sector performance in February which will undoubtedly weigh against the case for a Bank of England rate cut in the coming months.

The Chartered Institute of Purchasing and Supply's measure of service sector performance rose to 58.9 in February from 57.0 the previous month.

The latest reading is the highest since April 2004 and beats the corresponding figure in the 12-nation single currency area.

Analysts had predicted no change in the UK PMI.

A reading above 50 marks expansion.

Howard Archer at Global Insight described the release as "impressively robust".

"It will certainly boost Bank of England's confidence that the economy is improving, although much still depends on the strength of consumer spending going forward," he said.

The data makes certain that the Bank of England will keep interest rates unchanged next Thursday, he added.

The BoE has kept interest rates unchanged at 4.50 pct since August last year. Some analysts believe the central bank may be forced to deliver a rate reduction some time this year as overall economic growth disappoints and inflationary pressures fade away.


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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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