BoE meeting: no changes expected
The British Chancellor Osbourne will deliver the annual Autumn Statement at 11:15 GMT. The BoE December monetary policy decision will be announced a little bit later, at 12:00 GMT.
The Autumn Statement will provide an updated economic outlook and previews the government's budget for year 2014. This report creates upside risks for the British pound. The statement is expected to underscore the link between strengthening economic recovery and improving fiscal outlook for the UK.
As for the BoE meeting, it is widely expected that the policy will remain unchanged with a 0.5% interest rate and 375B pounds of asset purchases. The regulator will most probably stick to its forward guidance idea of the 7% unemployment threshold not being an automatic trigger for a rate hike. Despite the accelerated economic growth, the BOE doesn’t want to impede the recovery by a premature policy tightening.
Credit Agricole analysts assume that the inflation slowdown may make the BoE revise the employment threshold lower from 7%. Economists at Barclays recommend waiting for the meeting minutes to gain any fresh insights from the committee: in their view, today's meeting will be a non-event.