UK: Focus on the Bank of England meeting – Danske Bank

Focus today will be on the Bank of England (BoE) meeting, with the subsequent press conference of Governor Carney and the publication of a new Inflation Report, according to analysts at Danske Bank.

Key Quotes

“We expect the BoE to vote 6-2 in favour of keeping the Bank Rate unchanged and we still do not expect a rate hike before some time in 2019. We believe the BoE will revise down its optimistic GDP growth projection and we also expect it to announce that the Term Funding Scheme (TFS) will end in February 2018.”

“After the decline in the UK Construction PMI released yesterday, today's Services PMI for July will be watched closely for further signs of the expected economic slowdown in the UK.”

“In the US, non-manufacturing ISM is due out and we estimate the index to have moderated slightly to 56.5 in July, in line with the observed drop in the manufacturing ISM.”