Wednesday, 5 August 2015

Bank of England's Super Thursday

Ladies and Gentlemen,

If you look at the list of data being released tomorrow in the UK, you will see why the media are referring to it as ‘Super GBP Thursday’.

09:00     New Car Registrations
09:30     Industrial Production
                Manufacturing Production
12:00     Bank of England Inflation Report and Minutes to the meeting
                Bank of England Bank rate (0.5%)

We get 3 data points from the BOE at midday, the minutes of its policy meeting, the quarterly inflation report forecast and the Interest rate decision, presently 0.5%.
Normally, these reports are on separate days.

 What should we be looking out for?

How the members of the MPC vote, the last 7 meetings have been 9-0. Are there any dissenters in the ranks?
Martin Weale confirmed he was one of two members that nearly voted for rate rise at the last meeting and JP Morgan have forecast a 6-3 vote.
Who are the other possible dissenters? Kristin Forbes said there will be a rate rise ‘in the not too distant future’.

However I take note from the BOE chief economist  Andrew Haldane ‘ For me the combination of a healing economy, very low price pressures and a wobbly world means there is no rush to move rates from where they are now’. It is important to remember that the BOE mandate is to deliver price stability and then support growth and employment.

It will a very interesting day as the market presently expects a rate rise in May of next year, if the hawks win then 1.5680 is the level to watch whilst a leaning towards the doves would see 1.5470 tested.

Good Luck

Anish S. Lal @anish8fx
FX & Precious Metals, Atom8 Financial Services LLP
2nd Floor, Centenary House, Palliser Road, London W14 9EQ, UK
T: +44(0)20 3405 3910 | M: +44 (0)7983701816 | anish.lal@atom8.com | www.atom8.com

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