Global Market are negative ahead giving a clue behind at Indian stock market closing hours, Nifty negative by 135.75 (1.38%) ended at value 9,735.75 which is further a strong confirmation on bearish market.
WEF sources said recent Bank of England concerns about a potential consumer debt crisis were timely since there was evidence that the global banking system was less sound than before the financial crisis and that conditions were deteriorating in some parts of the world.
Inflation has risen since the Brexit vote as the pound’s sharp drop – it has fallen 9.5% since 23 June 2016, despite a recent recovery – makes imports to the UK more expensive. Last month, the squeeze on living standards worsened due to the increased cost of importing fuel, clothes and food, pushing inflation up to 2.9%, from 2.6% in July. The Bank of England now estimates the consumer price index will peak above 3% in October.
Mark Carney, the Bank’s governor, also used a speech in Washington to argue that a sharp reduction in migrant labor to Britain after the EU referendum has the potential to cause a spike in inflation. That’s pushing the rate setters at Thread needle Street to consider raising interest rates as soon as November.