Back
9 Feb 2015
BoE inflation report: Dovish outcome expected - RBS
FXStreet (Bali) - According to FX Strategists at RBS, this week's Bank of England Quarterly Inflation Report is expected to provide a dovish broad policy signal.
Key Quotes
"The Bank of England Quarterly Inflation Report is due, and we anticipate that growth and inflation estimates will be trimmed in the MPC’s latest forecast round."
"The most pronounced change will likely be a dip in the forecasts for nearterm inflation, which would be consistent with the speech Governor Carney gave in Davos in late January, where he noted that the UK may experience slight deflation in the near-term but added “[inflation] should pick up again in twelve months or so.” We think the broad policy signal will be dovish"
Key Quotes
"The Bank of England Quarterly Inflation Report is due, and we anticipate that growth and inflation estimates will be trimmed in the MPC’s latest forecast round."
"The most pronounced change will likely be a dip in the forecasts for nearterm inflation, which would be consistent with the speech Governor Carney gave in Davos in late January, where he noted that the UK may experience slight deflation in the near-term but added “[inflation] should pick up again in twelve months or so.” We think the broad policy signal will be dovish"