- Current betting says the Bank of England will hold off on rate hikes until the middle of next year - especially after the conservative victory on Friday likely means tighter fiscal policy for longer. BOE chief Mark Carney has the opportunity to either endorse that dovish view or challenge it when he presents new economic forecasts on Wednesday, and holds a press conference.
- Earlier, the BOE kept policy on hold, leaving the benchmark interest rate at 0.5%.
- “Our hunch is that the market is a bit too relaxed about it all at the moment,” says an economist. “The bank was warning in February about a risk of an inflation overshoot and we don’t see that going away. The underlying trend is still for a recovery.”
- The FTSE is up modestly today, as is cable.
- ETFs: FXB, EWU, GBB, EWUS, DXPS, FKU, QGBR, DBUK