Bloomberg reports that a surge in the UK inflation in April exceeded forecasts. Prices grew at the fastest pace in over a year, which prompted traders to slash their bets on rate cuts by the country’s central bank.
A Reuters poll showed the UK economy is expected to grow at a faster pace this year than previously estimated. The upgrade in forecasts is driven by surprisingly strong performance in the first quarter. At the same time, experts do not deny that the improvement may be only temporary.
According to Reuters, May 21 saw another day of dollar sell-offs, though not particularly intense. US Treasury bond yields remain elevated, causing concern among investors. Markets are watching for changes in US trade deals and assessing the country's economic health.
UK wage growth, which had held steady at 3% for five consecutive quarters, is showing signs of deceleration. Brightmine’s research reveals nearly half of the surveyed employers are now offering pay raises below this median level.
As analysts of Scotiabank warned, persistent price pressures in Canada will not allow the country's regulator to keep reducing borrowing costs in the near future. At the same time, experts noted that the accelerated price growth was observed before the manifestation of the US tariffs effect.
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