Today, focus will be on the Bank of England (BoE) meeting and the so-called 'Super Thursday', where we get the policy announcements, minutes, an updated Inflation Report and Mark Carney hosts a press conference. We expect the BoE to keep the Bank Rate at 0.25%, the government bond purchases target at GBP435bn, and the corporate bond target at GBP10bn. We expect the Bank of England to maintain its easing bias despite the much weaker GBP, as on several occasions the BoE has communicated that it will see through a higher inflation rate in the short term, as it is only temporary. Instead, the BoE wants to support the economy through a time with elevated uncertainty. In our view, it is too early to rule out that the economy could slow due to the higher amount of uncertainty, and we still see more than 50% chance of a rate cut from 0.25% to 0.10% at the next big meeting in February, but it depends on whether the economy slows in Q4.
In terms of data releases, US initial jobless claims will attract some attention ahead of the US jobs report tomorrow.
In Sweden, Service PMI, industrial data (production and orders) are due, and Riksbank deputy governor Kerstin af Jochnick speaks about current monetary policy and the economic situation. See next page for details.
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