Economic fortunes can change awfully quickly. JPMorgan revised its UK second quarter GDP forecast to 2% q/q from 1% after today’s industrial production data – that’s a big revision. They say the May service sector PMI added to the positive argument and that risks are to the upside.
Seeing as how production was essentially flat, the British economy has plenty of room to expand.
With growth turning, GBP risks may also be on the upside as well although I expect Carney wants to put his stamp on growth by making a grand dovish gesture early in his term.
