Flash: BoE not expected to cause waves tomorrow – Investec

FXstreet.com (New York) - Further evidence that the UK is heading towards ‘escape velocity’ emerged in yesterday’s surge in the UK services PMI release for July – the index followed the leap in the Construction PMI and solid Manufacturing PMI last week. That takes the PMI to its highest level since December 2006, notes Jonathan Pryor, Corporate Treasurer at Investec.

Key quotes

“Overall the report provided further evidence of the UK’s recovery moving onto a solid footing.”

“Ahead of Mark Carney’s first Inflation Report tomorrow, the data provides further basis for the Bank of England to focus its efforts on managing market expectations that the exit from policy accommodation is quite someway off, despite the continued upturn in recovery metrics.”