Markets focused on BoE rate rise
Nationwide reported that UK house prices rose by 0.8% in January, year on year prices increased by 11.2% and mortgage approvals increased to 71,000 in December. Net lending to individuals decreased slightly but still beat expectations and consumer credit produced a solid increase. PMI manufacturing edged higher but showed a slight slowdown in new orders growth.
The data had little impact as Sterling sentiment held firm in the belief that the Bank of England would raise interest rates to 0.5% on Thursday. Sterling broke above 1.3500 to the dollar while the Euro retreated to around 1.2010.
BRC data recorded a 1.5% annual increase in shop prices for December, the strongest reading since 2012 with Sterling holding above 1.3500 against the dollar this morning.