Chancellor Osborne reiterated the point, reinforcing that Britain will have to follow through after the leave vote. Bank of England has seen two downgrades. Fitch has downgraded the bank’s IDR from ‘AA+’ to ‘AA’, while Standard & Poor’s downgraded the UK by two notches from ‘AAA’ to ‘AA’. There has not been any announcement from Moody’s as of yet, they hold UK at ‘AA1’.
From the UK, on Wednesday, Net Lending to Individuals figures were released. U.K. mortgage approvals rose and house prices continued their steady advance in the weeks before the country’s vote on its European Union membership. The Bank of England said approvals for home loans increased to 67,042 in May from 66,205 in April, defying economists’ expectations for a decline. In June, home values rose 0.2 percent on the month and were up 5.1 percent from a year earlier, according to Nationwide Building Society.
Thursday was marked by Current Account data. The United Kingdom’s (UK) current account deficit was £32.6 billion in Quarter 1 (January to March) 2016, down from a revised deficit of £34.0 billion in Quarter 4 (October to December) 2015. The deficit in Quarter 1 (January to March) 2016 equated to 6.9% of gross domestic product (GDP) at current market prices, down from 7.2% in Quarter 4 (October to December) 2015, which remains the largest proportion since quarterly records began in 1955.
This week markets will be looking at:
Construction PMI (Monday 10:30)
Services PMI (Tuesday 10:30)
Industrial Production (Thursday 10:30)
