Pound dips as U.K. car sales fall for first time in 43 months; Bank of England on tap
The British currency was lower on Thursday after data showed that car sales in the U.K. dropped for the first time in 43 months.
The Society of Motor Manufacturers and Traders has said that new registrations were down 1.1% in October, compared with a year ago.
Sales this year are still 6.4% higher than in 2014, but it looks like the long run of post-recession growth is getting exhausted:
- New car registrations see 1.1% decline in October following period of phenomenal record growth.
- Total market year-to-date up 6.4% to 2,274,550 units registered – the best performance on record.
- Alternatively-powered vehicle market has a 13.8% boost, with diesel and petrol registrations steady.
The British currency declined after the news with GBP/USD last trading at 1.5386, down 0.01%.
EUR/GBP was last seen at 0.7069, up 0.07%.
Market players now turn their attention to the Bank of England.
The Bank’s Monetary Policy Committee will set UK interest rates today. A hike isn’t expected, but some members of the MPC may vote for the first hike since the financial crisis began. Last month they split 8-1.
The minutes of the meeting are also posted at noon, showing the details of the committee’s discussions and its views on the UK and global economy.
