Money Minute Friday 24 January: the key to UK interest-rate cuts

Economic data from the UK this morning could hold the key as to whether the Bank of England decides to cut interest rates next week or not. This morning we get snapshot surveys of sentiment across the manufacturing and services sectors in January.

Clearly, that should take account of any post-election bounce in confidence or activity. If no bounce is in evidence, researchers at Capital Economics reckon that the UK’s central bank is likely to cut rates when it next meets.

That said, December’s survey figures did show some evidence that activity was already picking up. So it could be a close-run thing.

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We’ll get similar snapshots over in the US. Those may be pored over for any impact that the recent ‘phase one’ trade deal with China has had on sentiment.

In the eurozone, it’s a similar story. Investors will be watching to see if signs of sentiment perking up in December have followed through into this month.