Daily Economic News – from Citizens Bank – Jan 14th 2016 Bank of England leaves policy as is with an 8-1 vote again, Aussie employment report not as weak as expected, US initial claims shift higher, Canada new housing price index. remains steady

The Bank of England has voted to keep its key interest rate at a record low of 0.5 percent as weak inflation has kept the pressure off policymakers to start raising borrowing costs.With a vote, once again, of 8-1 policymakers decided to keep rates steady at their January policy meeting, particularly since inflation remains at 0.1 percent, well below the Bank’s official 2 percent target.Britain’s growth is among the strongest of developed countries but since crude prices have fallen to near $30 a barrel, this would suggest that there will be very little inflation in the short term and harder times ahead for the country’s energy sector.
Australia’s employment report showed a fall of only 1k jobs, this was better than the 12.5k job shedding that the market had expected.Full-time employment saw gains of 17.6k and positive revisions to last month’s solid print.The participation rate fell (65.1% vs. 65.3% prior), however, keeping the unemployment rate steady at 5.8%.The market had expected a slight increase in the unemployment rate and only a one tick fall in the participation rate.Foreign direct investment in China printed a 6.4%, it’s lowest pace of growth since the end of 2014.
German wholesale prices fell in December, down 1.0% year over year.This while the full year German GDP rose a tick to 1.7%.The market had expected it to remain at 1.6%.This while Italian industrial output fell 0.5% in November, dragging the year over year print down to 0.9%, where 2.5% had been expected.
In North America this morning, we see US initial jobless claims increase to 284k, dragging the 4 week average up to 278.75k from 275.75k.Continued claims also climb higher to 2.263M up from 2.234M, the market had been expected a fall to 2.215M.US Import prices in the month of December fell 1.2%, less than expected fall of 1.4%, while export prices fell further than the 0.5% expected with a 1.1% print.Negative revisions were seen to the November figures as well.
North of the border, we see new housing price index print in-line with market expectations at 0.2%.CAD subject to volatility in crude prices and yesterday’s stock market rout, saw fresh highs made vs. the USD. This morning we find crude up 2.25% to start, pushing the CAD higher.Stock futures pointing to positive opens also likely helping the sentiment, over-all, in the market…but if I recall, we did open positive yesterday as well!

Daily updates courtesy of Citizens Bank