The BoE meet next week on Thursday January 30
Hopes are up for rates down, market pricing for a 25bp cut is around 70%
Morgan Stanley says No:
Ahead of the meeting are a few items to watch and listen out for:
21 January Bank of England Governor Carney speaks at Davos.
- Part of a panel but he may take the opportunity to drop a hint for us.
24 January will bring UK PMIs for Jan (preliminary)
- A rebound for these could take some of the expectations out of a Jan 30 rate cut. On the other hand further weakness may well lock it in. The December election has brought some certainty to Brexit (plenty of uncertainty remains on how the exit will be handled, but at least we now know it is coming and when) and promises of further government fiscal action is another positive - but is it enough for the BoE?
