mpc.theyserveforyou.com

mpc: 23 The latest data on the world economy suggested that activity was no stronger, and perhaps a little weaker than had been expected a month ago, with the US recovery broadly on track but the latest euro- area data somewhat softer than anticipated. Growth in Asia remained robust. The main news on the month for the UK economy was, on the one hand, the marked appreciation of sterling, which would weaken the prospects for net trade; and, on the other, the stronger recent picture of domestic demand provided by the latest estimates of GDP, together with the continued strength of retail sales growth and buoyancy of the housing market. It seemed unlikely that upward revisions to the estimated level of GDP at basic prices contained much news about the degree of spare capacity. Overall, the prospect remained one of a steady pickup in CPI inflation towards target, as the gap between actual and potential output closed.