BoE: Growing rate cut expectations – TDS
Analysts at TD Securities suggest that it's a quiet day for data, but the BoE's Haldane is speaking on productivity at 6pm local time, which could be a key driver for growing rate cut expectations.
“Haldane is one of several senior MPC members who haven't spoken on policy since before the November MPR (in Haldane's case specifically, not since early September). Haldane had previously been upbeat about growth prospects for 2020, with the expectation that business investment and growth pick up once uncertainty recedes. If he reiterates that viewpoint, then we would stick with our call that the BoE is more likely to remain on hold at this month's meeting, contingent on a decent bounce in the January PMIs. But if he substantially changes his tone, in line with the more recent MPC speakers, then that would tilt the odds toward a rate cut this month.”