UK data in focus: no rush to react inflation - Scotiabank

Analysts at Scotiabank explained that the UK public sector net borrowing data showed a surplus of GBP9.4bn in January, the largest for the month since at least 2001, data show (numbers to 2000 have been restated to reflect accounting changes). 

Key Quotes:

"The data will strengthen the government’s hand ahead of the March budget somewhat but the GBP barely reacted to the number. 

BoE Gov. Carney was addressing UK lawmakers today; the governor noted that the CPI overshoot was due entirely to a weaker GBP and that wages were key to how much tolerance the BoE had for above target inflation. 

The governor cautioned that the BoE had perhaps been “over-predicting” wage growth, which suggests no rush to react to the inflation push..."