4 Feb 2014
Flash: BoE to hold - BAML
FXStreet (Guatemala) - Strategists at Bank of America Merrill Lynch explained that the BoE is expected to leave rates unchanged.
Key Quotes
"The BoE is universally expected to leave interest rates and QE on hold at 0.5% and £375bn, respectively, at its meeting this week. Greater focus will be on whether it issues a statement alongside its decision, given that, with the unemployment rate only 0.1ppt above their 7% Forward Guidance threshold, the BoE is likely to set out further guidance in its Inflation Report on the 12th."
"When Forward Guidance was first rolled out in August last year, the BoE did not issue a statement alongside its monetary policy decision, waiting until the Inflation Report and associated press conference the following week before setting out the full details. It has also returned to its usual protocol of not issuing statements alongside its monetary decisions in recent months, after the unexpected comments in July last year. So overall, we do not expect a statement this week."
Key Quotes
"The BoE is universally expected to leave interest rates and QE on hold at 0.5% and £375bn, respectively, at its meeting this week. Greater focus will be on whether it issues a statement alongside its decision, given that, with the unemployment rate only 0.1ppt above their 7% Forward Guidance threshold, the BoE is likely to set out further guidance in its Inflation Report on the 12th."
"When Forward Guidance was first rolled out in August last year, the BoE did not issue a statement alongside its monetary policy decision, waiting until the Inflation Report and associated press conference the following week before setting out the full details. It has also returned to its usual protocol of not issuing statements alongside its monetary decisions in recent months, after the unexpected comments in July last year. So overall, we do not expect a statement this week."