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In the UK next week, the most important release is the CPI figures for April, due out on Wednesday, explained analysts at Danske Bank.

Key Quotes:

“One of the reasons the Bank of England stayed on hold in May was that inflation fell more quickly than it projected in February. Inflation is falling back towards 2%, as the impact of GBP depreciation fades. How fast it falls back will be an important factor for how fast the Bank of England tightens monetary policy, as lower inflation means it can support the economy for longer.”

“The second estimate of GDP growth in Q2 (due out on Friday) will also attract attention for two reasons. The first is because the initial estimate of only 0.1% q/q was lower than expected by most economists. The second is because it is the first time we get the expenditure components so that we can see why growth was weak from a demand perspective.”