020 7898 0500The BoE will meet today to announce its interest rate decision. It wasn’t all that long ago that almost everyone was expecting rates to be increased, but it now looks a certainty that they will be kept on hold. A raft of negative economic data, as well as signs that the UK economy is slowing, have led investors to have a rethink. Governor Mark Carney’s comments in April didn’t imbue the markets with any confidence, but I guess we’ll learn more today.
We will also see the balance of trade for March. The deficit narrowed sharply last time around so it will be interesting to see what the figure comes in at this time around. Indeed, last month, the UK posted its smallest trade deficit since September 2017. Still, a positive figure is unlikely to have too much of an influence on sterling, what with the rate decision due at midday.
Industrial and manufacturing production are expected to have strengthened in March, but if recent releases have shown us anything, it’s that forecasts can’t always be trusted.
