Review could see UK data releases return to mid-morning

(Sharecast News) - The UK government is poised to decide early next year whether to shift the release of key economic data to within financial market hours, it emerged on Monday, in response to concerns from traders and market participants over volatility caused by the current pre-market timing. According to Bloomberg, the Office for Statistics Regulation (OSR) was leading a review with input from the Office for National Statistics (ONS) and other stakeholders.

Since the onset of the Covid-19 pandemic, the ONS has released market-sensitive data, such as inflation and employment figures, at 0700, half an hour before sterling interest-rate markets open and an hour ahead of trading in UK government bonds.

The departure from the pre-pandemic norm of 0930 was reportedly designed to ensure efficient communication during a period when traditional press lock-ins were unfeasible due to restrictions.

However, traders and the Bank of England had called for a return to later release times, arguing that pre-market data publication reduced market liquidity and widened spreads.

A BoE committee emphasised that data releases during trading hours aligned with global standards and enabled real-time risk management.

The committee warned that pre-market releases increased transaction costs, which could cascade into the wider economy through higher borrowing expenses.

The ONS, under scrutiny from the OSR, was now engaging with stakeholders, including traders, the BoE, and the media.

Minutes from a September meeting of the BoE's SONIA Stakeholder Advisory Group revealed broad support for reverting to 0930, with only one panel member expressing neutrality.

The group highlighted that liquidity issues often extended into the afternoon before data releases and the morning after.

Despite the concerns, the ONS defended the benefits of the 0700 schedule, noting it provided greater opportunity for public communication and media engagement.

ONS director-general Mike Keoghan previously argued that early releases enabled officials to explain data in a broader context on morning broadcasts.

The statistics regulator had aimed to conclude its review by October this year, but granted the ONS additional time to consult with the BoE committee.

Reporting by Josh White for Sharecast.com.