The Bank of England seems set to reduce its forecasts acknowledge Britain’s already sluggish growth, the uncertainty surrounding Brexit, to which there are only 50 days and the slowdown in many of the major world economies.
But that will not prevent the bank from reminding investors that they still want to raise interest rates if Britain can avoid the shock of a possible “no deal Brexit”. The bank is expected to vote unanimously to keep interest rates at current levels of 0.75% as there is still no consensus on the exit from the European Union.
At the same time, British Prime Minister Theresa May returns to Brussels to try to get support for the Irish border issue. She is expected to meet with the committee chairman at 12:00 (GMT +2).
What do investors expect?
Investors are not convinced that circumstances will allow the BoE to raise interest rates, with currently only 50-50 expect to raise interest rates this year.
They will look for signals about the Bank’s future views on their monetary policy.
Bank meeting is scheduled for 14:00 (GMT +2).
Trader Milko Zashev