Global Newsbrokers Forex Service
Europe analysis at 09:43:01
MPC TO LEAVE UK RATES ON HOLD
Thursday, January 13
The very fact that an interest rate
cut was discussed at last month's MPC
meeting should be sufficient to rule
out any chance of a tightening at the
current meeting. Today's decision
will be for unchanged rates.
Inflation is subdued and the housing
market slowing, while recent weak
output and muted Christmas retail
sales will all reinforce the belief
that rates have peaked.
However, while the view spreads that
the next move in UK rates will be
downwards, the next area of debate
will be that of timing. We suspect
that given the UK economy's general
well-being, there will be no rush to
cut rates and it is unlikely that any
such move will be seen before the
summer.
Meanwhile, this morning's November
output numbers are expected to show
that both industrial production and
manufacturing output improved after
falling 0.1 per cent in October.
Main index