Rolling coverage of business, the world economy and the financial markets
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
In the UK, retail sales fell 1.4% in March, following a 0.5% drop in February, as people cut back on fuel and food spending amid soaring prices.
Good weather usually means sunnier times for retail, and firms will hope that the summer months can play a small part in stimulating waning confidence among a general public coping with the harsh realities of rising prices everywhere they turn. In reality, each day brings fresh warnings from business leaders that prices will likely continue to climb, driving consumer confidence in the wrong direction for retailers.
This seems a rather strange reaction given that nothing he said yesterday was in any way surprising. A 50 basis point rate hike is already priced in, as well as the prospect that we could well see another one soon afterwards.
We also heard from European Central Bank president Christine Lagarde yesterday as she capped off a couple of days of some rather hawkish comments from the likes of Belgium’s Pierre Wunsch, and ECB vice president Luis De Guindos who followed on from Latvia’s Martin Kazaks by arguing that a July rate rise was on the table. She didn’t come across as anywhere near as hawkish as her colleagues, pointing to the June meeting as the moment to decide on next steps, and lightly pushing back on the idea of a fixed point.
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