German Industrial Production Performance Is Still Weak
Germany’s industrial production unexpectedly fell 2.5% month-on-month in January. The market originally expected an increase of 0.2%, but the previous value was revised up from flat to 1.9%. At an annual rate, German industrial production fell by 3.9% year-on-year, which was an increase from the 1% drop in the previous month. The unexpected drop in German industrial production reflects that the manufacturing industry in Europe’s largest economy was still weak at the beginning of the year.
The Governor of Bank of England Commented on the Outlook of the UK Economy as “Positive”
When attending an online seminar, Bank of England Governor Bailey said that the current assessment of the UK’s economic prospects is “positive”, but the outlook is still more cautious. In addition, Bailey reiterated that the central bank has asked banks to prepare for negative interest rates for six months, which does not mean to imply the implementation of negative interest rates. The comments may help ease the pressure on the pound exchange rate due to the recent rise in U.S. bond yields.
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