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9 Aug 2013
Flash: What’s next for MPC? – Investec
FXstreet.com (New York) - The BoE have tied the Bank rate to an unemployment threshold, suggesting rates will remain lower for longer and this has thus far failed to dampen interest for GBP, notes Jonathan Pryor, Corporate Treasurer at Investec.
Key quotes
“The buoyant industrial, construction and services data gave the markets renewed optimism on the UK coming into this week and as we close the week, markets will pleased by the UK trade balance data released this morning.”
Looking to next week, there are several data releases, which will give the market a clearer picture of the UK recovery prospects. These include Retail Sales and jobs figures, July’s CPI inflation figures as well as the RICS housing survey. The minutes to the August MPC meeting will be published where we expect details of the voting pattern for the Bank rate, QE and Forward guidance decisions.
“We expect the latter vote to be unanimous as the MPC will seek to show solidarity behind the new Governor however it will have not been without debate given initial concerns on forward guidance cited by several members previously. The disclosure of the results of the 3 votes will be a one off as we expect subsequent MPC minutes to only reveal voting on the Bank rate and QE.”
Key quotes
“The buoyant industrial, construction and services data gave the markets renewed optimism on the UK coming into this week and as we close the week, markets will pleased by the UK trade balance data released this morning.”
Looking to next week, there are several data releases, which will give the market a clearer picture of the UK recovery prospects. These include Retail Sales and jobs figures, July’s CPI inflation figures as well as the RICS housing survey. The minutes to the August MPC meeting will be published where we expect details of the voting pattern for the Bank rate, QE and Forward guidance decisions.
“We expect the latter vote to be unanimous as the MPC will seek to show solidarity behind the new Governor however it will have not been without debate given initial concerns on forward guidance cited by several members previously. The disclosure of the results of the 3 votes will be a one off as we expect subsequent MPC minutes to only reveal voting on the Bank rate and QE.”