Although expectations for growth and inflation were higher, Financial Data Company Markit reported that the U.K.’s purchasing manager’s index was lower than estimated, falling to 55.6 from 57.4, in the month of Julyi. Markit further noted that Q3 GDP expectations were for +0.5%. Lastly, U.K. July CPI measured +0.1%ii. The sequence of economic indicators only added to the uncertainty that the Bank of England might not change its current policy. The data does indicate continuing growth but not steadily accelerating growth. Further, there are mixed economic signals from the Asia-Pacific region and volatile swings in commodity markets, particularly in crude oil, makes achieving the 2% inflation rate target less probable.The 3 September ECB policy decision, on the other hand, was much more predictable.
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