7 Jan 2015
BoE likely to take their time - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that the UK money market is currently not fully priced for the first hike in Bank of England interest rates until April 2016.
Key Quotes:
“In recent sessions, PMI data for UK manufacturing, construction and services industries have showed signs of losing momentum while disinflationary pressures are intensifying with oil prices continuing to spiral lower reflecting the disappointing pace of world demand”.
“The drop in energy prices combined with soft food prices suggests that it may be some time before UK CPI inflation rebounds to the Bank’s 2.0% y/y inflation target”.
"Consequently the BoE is likely to take its time before hiking interest rates. We have revised our forecast for the first BoE rate hike from August 2015 at the earliest to February 2016”.
Key Quotes:
“In recent sessions, PMI data for UK manufacturing, construction and services industries have showed signs of losing momentum while disinflationary pressures are intensifying with oil prices continuing to spiral lower reflecting the disappointing pace of world demand”.
“The drop in energy prices combined with soft food prices suggests that it may be some time before UK CPI inflation rebounds to the Bank’s 2.0% y/y inflation target”.
"Consequently the BoE is likely to take its time before hiking interest rates. We have revised our forecast for the first BoE rate hike from August 2015 at the earliest to February 2016”.