On Thursday, US President Joe Biden announced a new infrastructure plan saying “we have a deal” with Republicans. He said new spending worth $579 billion will create millions of jobs but for now the agreement does not include for climate change plans and those on the left of his party said the plan was “paltry”. Markets received the news positively and stocks moved higher.
Also on Thursday, the Bank of England kept interest rates at 0.1%. Inflation is running at 2.1%, year to May, but the Monetary Policy Committee now expects is to rise above 3% this year. Like the US Fed, the UK central bank is playing down concerns and insist this is “transitory”.
Another key indicator of US inflation is due later today. The core personal consumption expenditures index will be monitored closely.
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