OctaFX | OctaFX Forex Broker
Open trading account
Back

BoE: Inflation report to reinforce dovish expectations - RBS

FXStreet (Bali) - After the BoE kept its monetary policy steady on Thursday, the RBS UK Economics Team, now expects Wed Nov 12th inflation report forecasts to broadly validate market pricing for the first Bank Rate rise to come in August 2015.

Key Quotes

"The MPC left monetary policy settings unaltered in November (Bank Rate at 0.5%, the QE asset purchase target at £375bn) and there was no policy statement – as expected."

"The BoE will publish its latest quarterly Inflation Report and forecasts at 10:30 on Wednesday 12 November. The November MPC Minutes, including the policy votes, will be published at 09:30 on 19 November."

"We expect the November Inflation Report forecasts to broadly validate market pricing for the first Bank Rate rise to come in August 2015. Given the deteriorating global economic outlook and evidence of more broad-based (if mild) disinflation, there seems to be little incentive for policymakers to attempt to push back on current dovish market pricing. The RBS forecast is for the first Bank Rate rise to come in August 2015, with Bank Rate reaching 1.0% at end-2015 and 1.5% at end-2016."

NZD/USD consolidates sub the 0.77 handle

NZD/USD is trading at 0.7688, down -0.05% on the day, having posted a daily high at 0.7697 and low at 0.7682.
Read more Previous

Australia AiG Performance of Construction Index fell from previous 59.1 to 53.4 in October

Read more Next
Start livechat