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BoE Preview: Steady policy, no rate hike until Aug 2016 - Rabobank

FXStreet (Delhi) – Research Team at Rabobank, note that the Bank of England will announce its monetary policy decision today and they expect the bank to keep the policy steady and do not see the BoE lifting rates until August 2016.

Key Quotes

“As we noted above, August industrial production data surprised on the upside with a 1.0% m-o-m leap. However, over the past month there have been several signs that the UK economy lost momentum in Q3. Additionally, CPI inflation dropped back to flat y-o-y. Layered on top are concerns about slower growth in China and many emerging markets.”

“Against this backdrop the money market has pushed out its expectations of the first BoE rate hike to late 2016/early 2017. Today’s policy meeting is likely to bring an 8:1 vote in favour of steady policy, with McCafferty set to remain the sole hawk again this month.”

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