COM­MODI­TIES

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The Daily Telegraph - Business - - Front Page -

All eyes are on the Bank of Eng­land’s in­ter­est rate de­ci­sion and quar­terly mon­e­tary pol­icy re­port on Thurs­day. De­spite spec­u­la­tion about fur­ther cuts – into neg­a­tive ter­ri­tory – fore­cast­ers say rate-set­ters will keep their pow­der dry un­til Septem­ber. While Andy Hal­dane, the Bank’s chief econ­o­mist, struck an up­beat tone with his “so far, so V” com­ments, more re­cently mon­e­tary pol­icy com­mit­tee mem­bers have em­pha­sised the down­side risks to the econ­omy, such as a spike in un­em­ploy­ment when the fur­lough scheme ends and neg­a­tive ef­fects from so­cial dis­tanc­ing.

Ex­pect re­as­sur­ances that the Bank is ready to in­ject fur­ther stim­u­lus when nec­es­sary, even if it stays in “wait and see” mode for now.

Wed­nes­day’s pur­chas­ing man­agers’ in­dices for global ser­vices are likely to show the sec­tor con­tin­u­ing to re­cover as re­stric­tions ease. Econ­o­mists at No­mura note Fri­day’s US non-farm pay­rolls could re­veal a smaller in­crease in jobs added due to the re­cent rise in virus cases.

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