BOE won't be deterred to cut rates next week by PMI data - Credit Agricole

The firm expects the BOE to cut its bank rate by 25 bps on 30 January

In a client note, strategists Valentin Marinov and Manuel Oliveri, says that while the expectation is for a marginal improvement in business sentiment, "we doubt that the prints will sway the MPC's collective hand and expect the BOE to cut rates next week".

Adding that "to be sure, there is scope for positive PMI surprises today (based on the Deloitte CFO survey and CBI business optimism); but correlation between these gauges and the PMIs has been tenuous at best in recent years".

I somewhat agree with their take but I reckon the data later definitely has the ability to move the pound quite a bit depending on the size of the beat/miss. However, it won't take away from the fact that next week's meeting will definitely still be a "live" one.