Economics Weekly by Lloyds TSB

A busy week lies ahead for central bank events and economic data releases. Central banks in the UK, the euro zone, Canada and Australia are all forecast to cut interest rates this week in response to the weak economic backdrop and sharp falls in inflation.

BoE and ECB to cut interest rates, weak US jobs data expected

 

A busy week lies ahead for central bank events and economic data releases. Central banks in the UK, the euro zone, Canada and Australia are all forecast to cut interest rates this week in response to the weak economic backdrop and sharp falls in inflation. We expect the BoE and ECB to cut key rates by 0.50% to 0.50% and 1.50%, respectively. February surveys of manufacturing and services activity are due in the UK, the euro zone and the US and should offer some indication about the rate of contraction in output growth in Q1. Focus in the US will also be on the February employment report. A sharp rise in unemployment claims points to a step up in the pace of monthly job losses to above 600,000.
 

 

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