FanonymousX
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Could the Bank of England hike rates this week?
Recent UK economic data have been surprisingly strong and have raised financial market expectations that the next move in interest rates will be up. Although the MPC voted unanimously to maintain interest rates at 5% in December, there appears a real risk that some members may be swayed by the latest economic figures and could advocate an increase to 5.25% this week.
Although the ECB is widely expected to keep the refi rate at 3.5% on Thursday, the press conference will attract significant market attention as financial markets assess the outlook for policy in 2007. Euro zone economic data have been robust of late and ECB president Trichet could signal further tightening ahead. We forecast interest rates could reach 3.75% by the end of Q1 2007.
After the better than expected US payrolls report last week, the dollar could find further support from economic data this week. The trade deficit, on Wednesday, is forecast to have stayed below $60bn for a second successive month in November, and retail sales are likely to have risen strongly again in December. Our view remains that US interest rates will not be cut in the first half of 2007.
KHAMIS 8:00 malam GBP Interest Rate Statement
KHAMIS 8:45 malam EUR Interest Rate Statement
KHAMIS 9:30MALAM EUR ECB President Trichet Speaks
Interest Rate dinaikkan jika berlakunya Inflasi.Sekian..
Recent UK economic data have been surprisingly strong and have raised financial market expectations that the next move in interest rates will be up. Although the MPC voted unanimously to maintain interest rates at 5% in December, there appears a real risk that some members may be swayed by the latest economic figures and could advocate an increase to 5.25% this week.
Although the ECB is widely expected to keep the refi rate at 3.5% on Thursday, the press conference will attract significant market attention as financial markets assess the outlook for policy in 2007. Euro zone economic data have been robust of late and ECB president Trichet could signal further tightening ahead. We forecast interest rates could reach 3.75% by the end of Q1 2007.
After the better than expected US payrolls report last week, the dollar could find further support from economic data this week. The trade deficit, on Wednesday, is forecast to have stayed below $60bn for a second successive month in November, and retail sales are likely to have risen strongly again in December. Our view remains that US interest rates will not be cut in the first half of 2007.
KHAMIS 8:00 malam GBP Interest Rate Statement
KHAMIS 8:45 malam EUR Interest Rate Statement
KHAMIS 9:30MALAM EUR ECB President Trichet Speaks
Interest Rate dinaikkan jika berlakunya Inflasi.Sekian..
