UK: After retail sales, its time for BoE - BBH

Research Team at BBH, suggests that the Bank of England decision is due out shortly after it has provided low rate loans to banks, cut interest rates, and resumed asset purchases (both Gilts and corporate bonds). 

Key Quotes

“Most of the economic data in recent weeks has been reported above expectations.  There is no compelling reason to expect the BOE to take additional measures now.  It will likely keep the door open to additional action when or if needed.   

The UK reported August retail sales.  Headline sales fell -0.2% m/m vs. -0.4% expected.  Ex-auto fuel, sales fell -0.3% m/m vs. -0.7% expected.  Some pullback was to be expected after the July gains, which were revised higher for both series.  The statistics office said there is some evidence that a weaker pound is boosting foreign demand for luxury goods, as sales of watches and jewelry rose.  Despite all the talk, Brexit has not yet taken place and the full impact of the referendum is still to come.”