BoE: Most important event for the UK – Danske Bank

Research Team at Danske Bank, suggests that in the UK, the most important event this week is the Bank of England (BoE) meeting on Thursday.

Key Quotes

“We expect the BoE to maintain the Bank Rate and stock of purchased assets unchanged at 0.50% and GBP375bn, respectively. We expect both voting decisions to be unanimous, i.e. 9-0. There are many reasons why the BoE is in no hurry to raise rates, as growth seems to have slowed ahead of the EU in/out referendum and inflation is still subdued.

While the policy decisions are non-events, we look forward to hearing whether the BoE has anything to say about the current economic situation. Our main scenario is still that it will hike in Q1 17 but it depends on the election outcome.

Also, CPI inflation figures for March are due on Tuesday but the importance of these figures has declined due to the upcoming referendum. Everything is currently about the upcoming referendum, so we intend to continue monitoring political news and opinion polls closely. The opinion polls continue to indicate a very close race.”