The Bank of England is coming up at 1200 GMT, which is 8am US Eastern time:
A few snippet comments from the previews:
Nomura
- A strong labour market, potentially sticky core inflation in the near term, a loosening budget, some stronger data outcomes since the last MPC meeting, and the fact that 4.25 per cent doesn’t look like a particularly high end-point for rates relative to past cycles, all point to the need for a hike this week
MUFG
- We had previously reasoned that given the BoE decision was already a much closer call, the market turmoil would therefore allow the BoE to pause. But that view was also premised on the assumption that we would at least see a consensus CPI print ... to reinforce the weaker than expected CPI print last month
- the scale of increase in the annual rate of overall CPI from 10.1% to 10.4% when the market expected a drop to 9.9% means there is a very strong reasoning for the BoE to now ignore the recent market turmoil fuelled by the loss of confidence in certain banks and hike again
ING
- We suspect the Bank will want to see more evidence before ending its rate hike cycle entirely, and that’s particularly true after these latest inflation numbers. We’re still narrowly expecting a 25bp hike on Thursday
