Money News Overview Thursday 19th October 2023: Market mood is risk averse

Markets anticipate that the UK’s inflation figures increase the possibility that the Bank of England will raise interest rates by the beginning of 2024.

Core CPI inflation, which provides a more accurate indication of domestic inflationary pressures, increased by 6.1% y/y in September, beating forecasts for a decline to 6.0%. (This is down from 6.2% in August.)

Many believe that the Bank of England will be particularly concerned about the rise in services inflation because policymakers have indicated concern about the durability of inflation in the economy’s largest sector.

Today’s macro diary focuses on the United States. The weekly jobless claims, existing home sales for September, and the regional Philly Fed survey for October are among the data highlights.

Meanwhile, Fed Chair Powell’s remarks to the Economic Club of New York will be watched closely.

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