GBP: will the Bank of England’s Chief Economist change his stance on interest rates?

Sterling traded within a limited range yesterday, although it did regain some of the losses of last week against the US dollar following the lower-than-expected inflation number. Over the weekend the dollar was on the back foot as the possible Trump and Russian collusion story continues to drag on.

Looking to the day ahead, we have the CBI industrial orders which is an index based on a survey of about 550 manufacturers. Ultimately, it is an assessment of their order books for the coming three months and is thus a reliable representation of the health of the sector. The figure is expected to drop from 16 to 12 showing that the volume of orders has dropped.

After the European markets have closed we have the BoE’s Chief Economist Andy Haldane speaking about the international monetary and financial system. Last time Haldane spoke he appeared to be leaning towards a rate hike. With inflation sliding last week, the market will be keen to decipher his rhetoric to see if he offers any follow up comments on UK interest rates.