UK: Retail sales better than expected while the BoE keep rates unchanged - ANZ

Research Team at ANZ, notes that the UK’s August retail sales data were better than expected and July was revised sharply higher to +1.9% m/m (+1.4%).

Key Quotes

“In August retail sales fell 0.2% m/m but rose 6.2% y/y. Despite the August data, the trend in sales remains up and the 3m/3m volume of sales rose by 1.6%. Textiles, clothing, and footwear were weaker last month. The data confirm little dislocation before, during, or after the EU referendum by consumers.

The MPC voted 9-0 to leave policy unchanged but still keeps its easing bias “if the August outlook is confirmed”. Virtually every piece of data since the August inflation report and policy easing has contradicted the forecast of a near term slowing in the economy. The MPC is hedging its bets by qualifying its forward guidance.”