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UK inflation data strengthen case for BoE rate hike next month

Chris Scicluna
Emily Nicol
  • UK headline and core CPI up to the highest rates in 30 years amid broad-based price pressures; English coronavirus restrictions to be eased.
  •  Fall in German HICP inflation in December confirmed.

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BoJ slightly more upbeat but inevitably leaves policy unchanged

Chris Scicluna
Emily Nicol
  • UK labour market data indicated another solid rise in payrolled employees in December despite the rise in coronavirus cases.
  • Bank of France retail survey suggested a drop in sales in Q4 despite solid growth in December.

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Japan's tertiary and machine orders suggest strong rebound in Q4

Chris Scicluna
Emily Nicol
  • PBoC cuts rates and provides liquidity as Chinese authorities seek to bolster growth.
  • The BoJ will leave monetary policy unchanged at tomorrow’s Board meeting, but will likely revise up its assessment of the balance of risks to the inflation outlook.
  • In the euro area, the account of the ECB’s December policy meeting (Thursday) will provide detail of the range of views on the Governing Council.

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UK GDP above pre-crisis level

Chris Scicluna
Emily Nicol
  • Chinese exports beat expectations for a 5th successive month with broad based gain.
  • Japanese producer prices fell for first time since November 2020, as prices of petroleum and coal products slipped back at the end of last year
  • Euro area goods trade surplus likely narrowed further on the back of higher import prices.

 

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BoJ raises economic assessment for all nine regions

Chris Scicluna
Emily Nicol
  • Japan’s economy watchers headline index rose in December but Reuters Tankan reports moderation in manufacturing in January.
  • Chinese CPI inflation drops to 1.5%Y/Y and PPI inflation drops to 10.3%Y/Y.
  • Bank of France survey suggests activity held up well at the end of 2021 despite latest pandemic wave.

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