4 Apr 2014
BoE will be a non-event – RBS
FXStreet (Guatemala) - Analysts at RBS suggest that it is hard to muster much enthusiasm for the April BoE meeting.
Key Quotes:
“With the unemployment rate still above the 7% threshold 'Phase I' of forward guidance remains live – ie, the MPC is not even considering a rise in rates”.
“With activity data softening marginally, and CPI inflation falling further below target, there are few reasons to expect any change in policy, any statement or (in the Minutes in a fortnight's time) any dissent”.
“Official industrial production and construction output data for February will provide some further clarity around Q1 GDP, which we expect to come in at 0.7%, far enough below the MPC's 0.9% forecast to further shore-up the 'no change soon' policy stance”.
Key Quotes:
“With the unemployment rate still above the 7% threshold 'Phase I' of forward guidance remains live – ie, the MPC is not even considering a rise in rates”.
“With activity data softening marginally, and CPI inflation falling further below target, there are few reasons to expect any change in policy, any statement or (in the Minutes in a fortnight's time) any dissent”.
“Official industrial production and construction output data for February will provide some further clarity around Q1 GDP, which we expect to come in at 0.7%, far enough below the MPC's 0.9% forecast to further shore-up the 'no change soon' policy stance”.