"The last five years have shown that downside risks predominate. But the news this week has been as good as anyone could have hoped realistically"
- Philip Shaw, Investec economist
Halifax House Price Index has increased by 2.2% in March after a -0.4% contraction in February.
At the same time Services Purchasing Managers' Index soared by 1.5 points to 55.3, implying that situation in the economy is ameliorating and probability of additional easing measures are unlikely to be undertaken by the BoE.
"The last five years have shown that downside risks predominate," said Philip Shaw, an economist from Investec. "But the news this week has been as good as anyone could have hoped realistically."
"What's particularly encouraging is that this revival of business confidence is encouraging firms to take on more staff," said Chris Williamson, chief economist at survey compiler Markit.
© Dukascopy Bank