UK Services Growth Casts Doubt on BoE Rate Cut Prospects – PMI

Britain’s services sector grew more strongly than expected in September, a survey showed, adding to doubts about the need for a new Bank of England interest rate cut next month to cushion the Brexit vote impact.

The Markit/CIPS Purchasing Managers’ Index (PMI) for the dominant services sector slowed slightly to 52.6 in September from 52.9 in August, when it staged the biggest one-month gain in the survey’s 20-year history.

But the reading was comfortably higher than the median forecast of 52.0 in a Reuters poll of economists and Markit said the overall performance of the economy last month looked like it was the strongest since January.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.