Pound climbs above $1.30 as UK retail sales smash expectations – as it happened – The Guardian

Members exchanged views on the outlook and risks for the external environment, also taking into account the latest IMF World Economic Outlook, which had been released after the Governing Council meeting in early March, and the related discussions at the IMF spring meetings. It was underlined that the latest data on global activity and trade pointed to stronger global growth momentum and a re-synchronisation of the recovery, between global growth and trade and between advanced and emerging economies. However, the external outlook was considered to be still subject to elevated uncertainty, and the balance of risks to the outlook for global growth was assessed to remain on the downside.

Among the factors that continued to contribute to this uncertainty were the scope and timing of the future policy choices of the new US Administration, the economic impact of the United Kingdom’s withdrawal from the European Union, the rebalancing of demand and the transition towards lower growth rates in China, and developments in other emerging market economies. In particular, reference was made in the discussion to the high degree of uncertainty surrounding short-term developments in the US economy, which reflected a significant divergence between hard and soft data for the United States. Moreover, financial market participants and investors were reassessing the outlook for US growth and inflation, as it appeared that US data were no longer exceeding market expectations, and there was still considerable uncertainty surrounding the new US Administration’s policies, including the prospects for fiscal stimulus, and their likely expansionary effects.

Pound climbs above $1.30 as UK retail sales smash expectations – as it happened – The Guardian

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