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.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’