4 April 2023 - Inflationary pressure eased in March
The release of GDP data recently, which showed that the economy grew by 0.1% in the final quarter of 2022 is expected to have a positive effect on the growth figures for this year. According to a note to investors published by the London office of Deutsche Bank yesterday, the data released by the Office for National Statistics last week confirmed that the final figure for GDP in 2022 was 4.1% up from 4% previously. The positive carry-over of the data has, according to the German bank’s economic models, improves the chances that the UK economy won’t see a recession this year, but that is where the good news ends as the economy will almost certainly stagnate with whole year GDP of 0%. Despite no upgrades to its quarterly projections, Deutsche sees an improvement of 0.2% overall on its overall data for the year. With the economy on a tightrope this year, even the slightest adjustment to forecasts will create an overall change in the data. The Bank of England appears to still be considering its next move. Arch-hawk Catherine Mann tempered her tendencies last month, and voted for a twenty-five basis point rise in base rates, in line with most of her colleagues. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.