What To Expect Today From The BOE, ECB
Interest rate announcements from the European Central Bank and the Bank of England headline the economic calendar today. In the UK, policymakers are expected to cut interest rates by 50 basis points to bring borrowing costs to 1%, the lowest ever.
The ECB however is thought likely to keep interest rates on hold at 2% despite mounting threats to economic growth and record-low inflation.
Unlike with the BOE, for the ECB there have only been three weeks between the January and February announcements and policymakers have indicated a desire to wait and see the tone of “new information”.
Whereas the BOE decision seems generally clear cut, the ECB announcement stands to create substantial volatility as traders scrutinize the wording of the statement accompanying the release.
The ECB however is thought likely to keep interest rates on hold at 2% despite mounting threats to economic growth and record-low inflation.
Unlike with the BOE, for the ECB there have only been three weeks between the January and February announcements and policymakers have indicated a desire to wait and see the tone of “new information”.
Whereas the BOE decision seems generally clear cut, the ECB announcement stands to create substantial volatility as traders scrutinize the wording of the statement accompanying the release.