6 Feb 2014
Flash: BoE unlikely to act today - Investec
FXStreet (Córdoba) - Jonathan Pryor, Corporate Treasury Analyst at Investec believes that it is very unlikely Bank of England to take any action today.
Key Quotes
"Today’s highlights will undoubtedly be the two monetary policy announcements from both the BoE and ECB. Firstly, the BoE rate decision is unlikely to see any change to rates or QE, however the question on everyone’s lips is whether there will be an announcement on forward guidance?"
"The fast improving labour market landscape, with unemployment now teetering above the 7% threshold, could force their hand and the growing consensus is that the BoE will have little choice but to act. A change in forward guidance could come in the form of tighter labour market conditions to be reached before rate rises are considered and this could be Sterling negative.”
“If there’s no announcement today, the focus will be on next week's Quarterly Inflation Report which would be the next opportunity for the BoE to announce changes."
Key Quotes
"Today’s highlights will undoubtedly be the two monetary policy announcements from both the BoE and ECB. Firstly, the BoE rate decision is unlikely to see any change to rates or QE, however the question on everyone’s lips is whether there will be an announcement on forward guidance?"
"The fast improving labour market landscape, with unemployment now teetering above the 7% threshold, could force their hand and the growing consensus is that the BoE will have little choice but to act. A change in forward guidance could come in the form of tighter labour market conditions to be reached before rate rises are considered and this could be Sterling negative.”
“If there’s no announcement today, the focus will be on next week's Quarterly Inflation Report which would be the next opportunity for the BoE to announce changes."