The U.K. economy stagnated, marking three straight months without growth






The U.K. economy unexpectedly stagnated in October, marking three straight months without growth for the first time since 2009. Gross domestic product was unchanged following two consecutive months of decline, the Office for National Statistics said on Tuesday. Economists had forecast a 0.1% expansion. GDP rose just 0.7% from a year earlier, the smallest increase since June 2012. The services sector grew from September, as did manufacturing as stock building resumed ahead of the now-postponed Oct. 31 Brexit deadline. However, this was offset by lower oil production and the steepest drop in construction output since the beginning of 2018. (Bloomberg)

The Federal Reserve is expected to conclude its December meeting on Wednesday afternoon by signaling it’s in no hurry to do anything to change its neutral stance on interest rates. But Fed Chairman Jerome Powell is likely to promise the central bank will do whatever is necessary to keep liquidity high and overnight lending rates steady at the end of the year, a time when the short-term lending market is typically under the most pressure. (CNBC)

 

 

Source: Danareksa Sekuritas Debt Research
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