BoE: Focus solely on the tone in the summary and minute – Danske Bank

In the UK, focus is on Bank of England meeting at 13:00 CET and is one of the small meetings with an Inflation Report and a press conference, so focus will be solely on the tone in the summary and minutes, as no one expects any policy changes, explains the analysis team at Danske Bank.

Key Quotes

“Our base case is that BoE maintains the hawkish twist to its neutral stance but given Q1 GDP growth was revised down (and not up as BoE expected) and nominal wage growth has declined, risk is tilted towards a more dovish tone. Market pricing seems fair at the moment as the first full hike is not priced in before late 2019.”