Thursday, September 09, 2010
Bad trade, Bank unchanged
Posted by David Smith at 01:00 PM
Category: Thoughts and responses

The surveys keep telling us that exports are doing very well but the official figures are not reflecting that, to the extent that is needed. July's 8.7 billion trade deficit in goods (4.9 billion including services) was a shocker. Even the revision to the previous month's data went the wrong way - revised up from 3.3 billion to 3.9 billion. Room for improvement. More here.

Exporters won't be encouraged by the latest OECD assessment, which is that growth in advanced economies is slowing more than it anticipated. The OECD doesn't expect a double-dip but it does warn that a further monetary stimulus, and delayed fiscal consolidation by those countries that have "fiscal space" may be needed. More here.

The Bank of England left Bank rate unchanged at 0.5% and maintained the existing 200 billion of quantitative easing.