BoE: No change in policy today – Deutsche Bank
|Ahead of today’s BOE meeting, economists at Deutsche Bank note that the focus will be squarely on the minutes and in particular the tone and language used to assess last week's mostly dismal data.
Key Quotes
“In particular, the drop in wage growth (mom) for the first time in over a year and the sharp fall in industrial production should be a topic of discussion. On the one hand, poor output data to kick off Q2 could raise some concerns for the MPC regarding the strength of UK economy.”
“On the other, stronger retail sales data may keep hawks optimistic of a bounce back in Q2. They go on to say that while it is still early days, the BoE could strike a less hawkish tone though the team expect them to largely look past this in anticipation of May data (the last data they will see before the August MPC meeting).”
“In summary our economists expect no change in policy today but still think August is ‘live’ for an opportunistic rate hike (currently priced at a little over 25% probability for a hike).”
“It’s worth adding that later in the evening we’ll also have Governor Carney’s annual Mansion House speech, which in the past have been important market moving events for UK assets. But like the MPC meeting, they expect Carney to also sound fairly cautious but retain the MPC’s tightening bias.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.