BoE: Most Important Event for the UK – Danske Bank
Research Team at Danske Bank, suggests that in the UK, the most
important event this week is the Bank of England (BoE) meeting on
Thursday.
Key Quotes
“We expect the BoE
to maintain the Bank Rate and stock of purchased assets unchanged at
0.50% and GBP375bn, respectively. We expect both voting decisions to be
unanimous, i.e. 9-0. There are many reasons why the BoE is in no hurry
to raise rates, as growth seems to have slowed ahead of the EU in/out
referendum and inflation is still subdued.
While the policy
decisions are non-events, we look forward to hearing whether the BoE has
anything to say about the current economic situation. Our main scenario
is still that it will hike in Q1 17 but it depends on the election
outcome.
Also, CPI inflation figures for March are due on
Tuesday but the importance of these figures has declined due to the
upcoming referendum. Everything is currently about the upcoming
referendum, so we intend to continue monitoring political news and
opinion polls closely. The opinion polls continue to indicate a very
close race.”
(Market News Provided by FXstreet)
