BoE Quarterly Inflation Report On Its Way
Good morning. Whilst the Greek-Euro discussions are still making all the headlines, we see the Bank of England take centre stage today as the Quarterly Inflation Report is released.
Yesterday’s talks between Europe and Greece did not provide any results, but the markets were advised not to be alarmed by this. Finance Minister Varoufakis maintained that yesterday’s discussions were simply that and not aimed at reaching an immediate conclusion. The Eurogroup’s Dijsselbloem stated that progress was being made but it was not enough for any agreement and talks would continue on Monday.
Today’s release of the Bank Of England’s Quarterly Inflation Report is the headline act of today’s events, followed by a speech from Mark Carney. We have seen talk of a rate hike to be put on the backburner by the BoE recently and whilst Carney has hinted that economic normalization may take longer than previously expected, today’s figures, especially keeping an eye on wage growth, could confirm this.
Sweden has become the latest country to cut interest rates this morning. With rates now at -0.1% in a surprise move, a Quantitative Easing programme was also announced.
Away from the UK, we have retail sales figures from the US and a speech by RBA Governor Glenn Stevens.