Economics weekly by Lloyds TSB

Following last week’s decision by the Bank of England to keep its monetary policy unchanged, the UK sees a fairly quiet week in terms of economic data releases.

Markets eye Bernanke and developments in China & Greece

Following last week’s decision by the Bank of England to keep its monetary policy unchanged, the UK sees a fairly quiet week in terms of economic data releases. Trade data can be volatile, but we look for an improvement in the UK’s visible balance to a shortfall of £7.4bn in February compared with January’s reading of £8.0bn. We look for this to be driven by trade with non-EU countries, rather than the EU where demand for UK exports may have weakened in response to a fragile economic recovery and concerns about possible spill-over effects from Greece. Meanwhile, March’s RICS house price survey is due this week, where we look for a net balance on prices of +20 from +17 previously. The BRC’s March Sales Monitor and Nationwide consumer confidence survey are also scheduled for release.

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