Rates Day

Rates Day

Good morning from an extremely frosty London where it appears that winter has well and truly kicked in. As it’s the first Thursday of the month, today’s economic calendar is dominated by the rate announcements from both the Bank of England and European Central Bank.

If truth be told, the BoE rate announcement will probably be a non-event as there seems to be a status quo of not wanting to change rates just yet due to falling inflation, the worsening Eurozone economy and this weeks poor PMI. When nothing changes, the MPC don’t even release an accompanying statement so the impact of this will most likely be very limited.

There is no movement expected on the rates from Mario Draghi and the ECB today either. However, the markets will take a much keener interest on what is happening there as Draghi holds a press conference immediately after the announcement. It is expected that he will continue with his “wait and see” approach regarding the assessment of the latest easing measures. It will be interesting to see how Draghi conveys his message, considering the rumours that Central Bankers (Germany) aren’t happy with this. Thus far, the markets have not been overly impressed with the ECB’s easing efforts so it will be interesting to see if Draghi hints at a readiness to launch QE.

Away from rate decisions, there is also manufacturing production data and GDP estimate from the UK, various speeches from Fed members and jobless claims from the US.

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