FXStreet (Delhi) – Research Team at Danske Bank, suggests that we are in for another ‘Super-Thursday’ with today’s Bank of England meeting where the policy announcement, minutes from the meeting and the November Inflation Report will be released at the same time.
Key Quotes
“We expect another 8-1 vote to keep the Bank Rate unchanged against increasing it immediately but also reckon that risks are probably skewed to the hawkish side as it is more likely that the vote will be 7-2 than 9-0.”
“We think the minutes will acknowledge that domestically generated inflation pressure is increasing as higher nominal wage growth is due to a tighter labour market and not increasing productivity growth. The Inflation Report will most likely include a downward revision of BoE’s projections for GDP growth, inflation and unemployment, at least in the short term.”
“Finally, note that Bank Staff will assess the pass-through from the exchange rate to inflation through import prices. According to the BoE, import prices have declined by less than suggested by the appreciation of the GBP. This assessment has the potential to be a very important part of the Inflation Report since the BoE has expressed concerns from time to time about the strong GBP. “
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