Dear Reader,

Today's overview of economic news and market action:

• The BoE left monetary policy unchanged yesterday, as expected …
• However, the BoE removed its tightening bias …
• Market reaction to the meeting was muted …
• Currency-wise, the dollar handed back some of its gains from the day before …
• EUR/USD is in the top half of $1.08-1.09 …
• GBP/USD is up at the midpoint of $1.27-1.28 …
• EUR/GBP remains in the lower half of 85-86p …
• Today, US labour market report for January is the main release note …

Stronger export sales boost manufacturing production in January

Manufacturing output rose to the greatest extent since May 2022, albeit only marginally, accordingly to the latest AIB Ireland Manufacturing PMI®. Production growth was supported by an increase in new work from abroad, alongside efforts to clear backlogs.

World economy grew at a very modest pace in 2023. Subdued growth expected again in 2024, with continuing weak performance by most advanced economies in particular. Inflation fell sharply last year and further moderation in price pressures anticipated in 2024.

ECB on hold for third straight meeting

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 4%.

The Lady’s Not for Turning? 

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 
4%, as expected.