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Contrasting the UK and Europe

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  • The UK provides some of the more interesting data and events today, with labour market data (a further decline in the number of unemployed expected) and the Bank of England inflation report.
  • The UK perhaps has a wider influence than the size of the economy suggests as its central bank was early in tightening policy. Quantitative policy started to tighten Q2 2013 and regulatory policy has also been used to curb credit growth.
  • The ECB has a rather different set of circumstances to deal with. Euro area industrial production data should bounce back from the weakness of August (the German anomaly drops out) but it is still expected to be a soft figure.
  • There are a couple of speakers from the US Federal Reserve today, but otherwise the US calendar is uninteresting. In Japan the official government spokesperson officially spoke, to deny media reports of a possible delay to the consumption tax increase.

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