Today, the Bank of England sets the Bank Rate and communicates the target for its asset purchases. They are expected to be maintained at 0.50% and GBP375bn, respectively. We expect the vote count to be 8-1, as Ian McCafferty will probably continue to vote for a hike due to the strong development of the labour market. Based on BoE governor Carney's very dovish speech, we already know that the BoE is likely to take another dovish stance. The new Inflation Report is also set to attract attention since we will get more precise information about how the latest developments in the global economy and financial markets have affected the BoE's view on the economy in terms of growth, unemployment and inflations forecasts.
ECB President Mario Draghi will speaking at 09:00 CET. We expect him to maintain a dovish stance, echoing remarks made in speeches last week and on Monday that the ECB will 'review and possibly reconsider' its monetary policy in March. We expect a 10bp cut in the deposit rate at the meeting in March.
A range of data is released from the US today, including initial jobless claims, factory orders and durable goods orders.
To read the entire report Please click on the pdf File Below