As DB’s Jim Reid writes, the BoE meeting due in minutes, should be a non event as recent inflation prints and macro data were broadly in line with consensus. Notably, any discussion on what the Brexit breakthrough on Friday might mean for policy could be the most interesting feature.
Here is some more courtesy of Rajan Dhall and fxdailyterminal.com.
BoE Preview 14/12/17
- As in the aftermath of the last rate hike – or more appropriately, reversal – the MPC will stay on hold.
- They will also likely maintain their forecast for 2 more hikes over the 3 year forecast horizon, which on balance, was a touch less hawkish than the market anticipated.
- Uncertainty over Brexit will add to their wait and see approach from here, with focus on a transitional period likely to be highlighted again.
- Recent data run positive, but spending data this morning is a volatile series and the inflation pick up seen Tuesday was already in BoE projections where they see headline CPI topping out at 3.2%.
via http://ift.tt/2kqRXMS Tyler Durden