The news is understandably dominated by Moody's overnight negative watch on the UK's AAA sovereign debt rating. In many ways it is remarkable the UK still has a AAA rating but the timing is curious. Very recent growth data has been encouraging and you would have thought they would have waited for the key January public finance numbers.
More important is the drop in inflation in January to 3.6%, from 4.2%, as last year's VAT hike dropped out of the comparison. In line with expectations and on course to drop to 3% over the next couple of months. More important is what happens after that. Retail price inflation 3.9%, lowest since February 2010. More here.