It is 12.14pm and the Inflation Report/MPC meeting is under a wet sail. Rates were unsurprisingly left unchanged. Growth targets for GDP were increased, but by more than most people thought – GDP for 2017 was doubled to 2%, 2018 to 1.6% and 2019 to 1.7%. Inflation is expected to hit 2.75% by early 2018 and will drift a smidgen to 2.6% by 2019. There was not the slightest sign of ‘mea culpa’ or contrition from the BOE for either hysterically negative forecasts or for unnecessarily putting rates down to 0.25%.
The FTSE 100 blipped up a tad from its slumber. Admittedly it was forecasted to open just below the Plimsoll line early this morning. Now it is up 30 points at 7137. Miners are strong. Banks were OK. There was a ‘love affair’ going on with Reckitt Benckiser – up 3.1%.
Of those companies that reported Shell is +1.5%, Astra Zeneca -1.5%, Vodafone -0.5% and Johnson Matthey the same. It never ceases to amaze me how many people out there grumbling at the fact that GDP is stronger than was forecasted. As ‘remainers’ many are desperate for the UK to fail in its quest for success and superficially seem very happy at the thought of the UK having its nose rubbed in the poop! Sad!