Money Briefs: BOE sees chance of further rate cut

BOE sees chance of further rate cut

LONDON • Bank of England (BOE) policymakers indicated there is still a chance of another rate cut this year as they assess the potential longer-term fallout from Britain's decision to leave the European Union.

While the nine-member Monetary Policy Committee noted that recent near-term data had been stronger than expected since the Brexit vote, it could not draw inferences for its longer-term forecasts.

The comments were published alongside the committee's latest policy decision yesterday, which showed that all members voted to keep the key interest rate at a record-low 0.25 per cent.

They were also unanimous over continuing with the purchases of gilts and corporate bonds unveiled last month.

BLOOMBERG


US retail sales down 0.3% in August

WASHINGTON • Retail sales in the United States fell more than expected last month, amid weak purchases of cars and a range of other goods, pointing to cooling domestic demand that could further diminish expectations of an interest rate increase by the Federal Reserve next week.

The Commerce Department said yesterday that retail sales declined 0.3 per cent month on month, after an upwardly revised 0.1 per cent gain in July. Sales were up 1.9 per cent from the previous year.

Coming on the heels of reports showing a slump in manufacturing activity last month and a slowdown in job growth, the retail sales data tempers hopes of a strong rebound in economic growth during the third quarter.

The report also suggests that the Fed will leave interest rates unchanged at its policy meeting next Tuesday and Wednesday.

REUTERS

A version of this article appeared in the print edition of The Straits Times on September 16, 2016, with the headline 'Money Briefs'. Print Edition | Subscribe