15/10/2014
Exclude raise interest rates before the end of the year
with inflation Pressing.. Sterling retreat in the face of 12 international currency
The British currency fell sharply following the announcement of lower inflation rates in the British economy. The inflation rate has decreased more than expected, the decline of 1.5 per cent in August last year to 1.2 per cent in September. This rate is less than 2 percent set by the Bank of England. This finding led to the exclusion of most economists in the United Kingdom higher interest rates before the end of the year. The proportion of the decline in British pound towards cents, up to GBP per 1.5974 dollars. It also fell against the euro, the European currency was Sterling resides above the euro before the announcement of the inflation, but fell by 0.26 percent to 1.2583 euros per sterling. He said Mitchell's ' economic ' financial analyst on the London Stock Exchange: ' sterling fell against the euro and the dollar, but dropped in the face of 12 of the 16 international currency basket is compared, and yet the biggest surprise we have seen large-scale purchase of Sterling '.
The economic circles welcomes and the British mostly currency depreciation, since the timing of the decline came not from the perspective of a significant number of economists, notably Dr. Korn Geldof Professor at Xtra banks and money. Geldof said that if the decline continues, Britain will see economic conditions can be described at least as uncomfortable. He said for the ' economic ': ' in natural conditions can result in devaluation of the economic recovery, which will encourage the export process, but this is unlikely now, the decline coincided with the continuing state of economic distress in Europe, increasing the access of the European economy, especially Germany in recession '. His: ' retrogressive value of Sterling will accompany mostly with a decrease in the value of British exports to the Eurozone, and this will inevitably affect the British trade balance adversely '.
But it's not just the British trade balance, the most controversial now that low inflation will keep the Bank of England to maintain the current interest rate that does not exceed 0.5 per cent, which may weaken the savings rate in the United Kingdom. In a survey published yesterday by the British retail sales recorded the biggest monthly decline last month in years, with continued market complex price cut while warm weather commended shoppers buying winter clothing new. «Reuters» Agency from the British Retail Consortium said total sales fell 0.8 percent in September from a year ago, the largest annual drop since April 2012, in contrast to the strong growth of 2.7 per cent in August.
The Union said the decline in retail sales in September was the largest monthly decline since the peak of the financial crisis in December 2008, excluding the months of April 2012 and 2013 that sales had fallen because of factors associated with the timing of the Easter break. But he said that weak sales last month was caused by warm weather in the fall over due to a slowdown in the overall economy and the demand for goods such as furniture Chair remained strong. The EU said that the total food sales in the third quarter of 2014 fell by 1.7 percent year-on-year, the largest drop in five years.
