Deflation Returns to the UK
As a UK Binary Options broker you will of course always be interested in the many facts and figures that are released on various days or the week from all countries of the world. For some of that data is going to enable you to see at a glance whether any country is likely to see a continued upturn in regards to their finances or the opposite.
Over in the UK it has been found that during September deflation reared its ugly head once again, which meant consumer prices fell again for the second time so far this year.
Inflation in the UK for September turned into deflation of 0.1% having been flat and at zero percent for August. There are of course always going to be lots of reasons for deflation however the United Kingdom’s deflation does appear to be due to falling fuel prices.
Whilst Great Britain has been seeing zero inflation for most of the past year, with deflation once again happening that will add even more pressure on the Bank of England in regards to possibly raising interest rates, which has been the main topic of conversation between traders for most if not all of this year.
However, it was only last week that the Monetary Policy Committee at the Bank of England stated that as inflation is not expected to be at 1% for the rest of the year and into next year at the earliest they expect to not even consider raising interest rates until at least February 2016.
If fact many traders are expecting interest rates to not start increasing in the UK until at the very earliest 2017, however anything is of course possible in the world of finance and you should always keep in mind the Monetary Policy Committee could vote to raise interest rates at any of their next meetings.
The GDP growth in the UK is probably also going to be remaining at around 0.5% for the next few quarters and as such the likelihood of interest rates increases is highly unlikely.
One of the main benefits of low inflation is of course that people have more disposable income available, and that then naturally leads to more spending and saving. So do keep in mind some potential retail based Binary Options trades on UK based companies if you are thinking of placing some trades in the coming weeks or months.
