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1 Feb 2016
BoE: Expect no surprises in the policy meet - TDS
FXStreet (Delhi) – Research Team at TDS, expects no surprises on the BoE’s policy front, but 2yr gilts have fallen off a cliff in the last month, and the broader yield curve has also shifted down.
Key Quotes
“This will help offset risks from global growth, and while inflation and output forecasts might be a bit weaker in 2016, they're likely to be largely unchanged at years 2 & 3, which might be interpreted as a bit hawkish by markets.
Services PMI: Equity price declines in January likely weighed on sentiment, and our early tracking suggests the PMI services measure will come in weaker than expected, with a decline to 55.2, leaving it firmly in expansion territory, but still trending down from its elevated early-2015 levels.”
Key Quotes
“This will help offset risks from global growth, and while inflation and output forecasts might be a bit weaker in 2016, they're likely to be largely unchanged at years 2 & 3, which might be interpreted as a bit hawkish by markets.
Services PMI: Equity price declines in January likely weighed on sentiment, and our early tracking suggests the PMI services measure will come in weaker than expected, with a decline to 55.2, leaving it firmly in expansion territory, but still trending down from its elevated early-2015 levels.”