11 Jan 2016
Bank of England meet is likely to be a non-event – BBH
FXStreet (Delhi) – Research Team at BBH, suggests that this week’s Bank of England meet is likely to be a non-event for the markets.
Key Quotes
“Many have pushed a UK rate hike into the end of next year. There has been one MPC member that has been voting for an immediate hike. It might not make much of a difference if he rejoins the fold. It is not like McCafferty's vote determines the dovishness or hawkishness of the MPC.”
“The weakness of sterling is likely seen as a favorable development, unwinding part of the past appreciation. The risk is on the downside for UK industrial output. The consensus expects a flat report. Such a report would still seem to drag down the year-over-year rate from 1.7%. Industrial output rose 0.7% in November 2014, and this will drop out of the calculation.”
Key Quotes
“Many have pushed a UK rate hike into the end of next year. There has been one MPC member that has been voting for an immediate hike. It might not make much of a difference if he rejoins the fold. It is not like McCafferty's vote determines the dovishness or hawkishness of the MPC.”
“The weakness of sterling is likely seen as a favorable development, unwinding part of the past appreciation. The risk is on the downside for UK industrial output. The consensus expects a flat report. Such a report would still seem to drag down the year-over-year rate from 1.7%. Industrial output rose 0.7% in November 2014, and this will drop out of the calculation.”