Commenting on the UK PMI Flash data released this morning, Melanie Baker, senior economist at Royal London Asset Management, said:
“The composite UK PMI Flash data would suggest we are unlikely to see a rate cut from the Bank of England next week.
“After a business survey jump like this and with optimism higher, why not wait a bit longer to see how things play out?
“PMIs are not the ‘be all and end all’ for the Bank of England. Conversations between their Agents and businesses this month will give them a much more nuanced picture on the issue of Brexit-related uncertainties in particular.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £138.9 billion of assets and employs 104 investment professionals as at end March 2020. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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