Money Minute Wednesday 18 December: UK inflation and German confidence

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In the UK this morning, hot on the heels of yesterday’s employment data, we have inflation figures for November. The rate of inflation is expected to remain at around 1.5%. That’s well below the Bank of England’s central target of 2%. And that may well remain the case for some time.

If the pound continues to strengthen in the wake of the decisive election result, that will also help to keep a lid on inflationary pressures. In turn, that could free the way for the Bank of England to leave interest rates at current low levels, or even cut should it be seen as necessary.
Meanwhile over in the eurozone, we get the latest snapshot of business confidence in the German economy. All eyes are on the eurozone’s biggest economy. There have been some hints that the worst is past for German manufacturing, but other data releases have indicated that the sector remains firmly in the doldrums.
Most analysts expect to see little change on that front today.

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