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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades below 1.1450 despite disappointing US data

EUR/USD is having a difficult time gathering bullish momentum in the early American session and trades in the negative territory below 1.1450. The US Census Bureau reported on Friday that Retail Sales in December fell by 1.9%, missing the market expectation of a no-change by a wide margin.

EUR/USD News

GBP/USD drops below 1.3700 as dollar gains traction

GBP/USD stays under modest bearish pressure in the American session and trades below 1.3700. The US Dollar Index is clinging to modest daily recovery gains near 95.00 despite weaker-than-forecast macroeconomic data releases from the US.

GBP/USD News

Gold fluctuates in daily range above $1,820 after US data

Gold declined to $1,820 during the European trading hours but managed to edge higher toward $1,830 in the early American. The benchmark 10-year US Treasury bond yield retreated from 1.75% after the dismal US data, allowing XAU/USD to gain traction.

Gold News

Dogecoin price on track to hit new highs, rallying 16% with Tesla payments going live

Tesla announced that it accepts Dogecoin and cannot receive or detect any other cryptocurrency. Analysts have predicted an explosive rally in Dogecoin price, continuing the uptrend. 

Read more

Why did TSLA stock fall 7% on Thursday?

Tesla stock dumps on Thursday as tech takes a bath. TSLA shares fell nearly 7% to close at $1,031.56. Tesla support at the short-term pivot remains at $980.

Read more

Forex MAJORS

Cryptocurrencies

Signatures