Bank of England raises rates for the first time in a decade
- GBP - BOE Gov Carney Speaks
- GBP - BOE Inflation Report
- GBP - Official Bank Rate: 0.50%
The Bank of England raised interest rates for the first time in a decade yesterday to half a percent, with a vote of 7-2. However, after announcing there will be only two more rate hikes scheduled in for the next three years, it wasn’t the hike cycle the markets were hoping for. The Pound tumbled against its major counter parties as the markets were disappointed with the dovish tones.
Across the pond, US President, Donald Trump appointed the favourite, Jerome Powell as the next Chair of the Federal Reserve. As Powell already serves on the Board and his views are similar to that of the current chair, Janet Yellen, it is expected he won’t cause much disruption to the current Fed’s plans, compared to some of the other candidates. As the markets had been expecting the decision, the Greenback was little moved on the announcement.
- CAD - Employment Change
- USD - Average Hourly Earnings m/m
- USD - ISM Non-Manufacturing PMI
Today will see a busy end to the week as the UK release the Services PMI, which is expected to post 53.3. In the afternoon, the focus will move to the US, with the release of key labour data. Non-Farm Payroll is expected to bounce back from last month’s bearish -33k to a very bullish 311k. Average hourly earnings and unemployment rate will also be posted, expected to post 0.2% and 4.2%. FOMC member, Neel Kashkari is to speak at the Women in Housing and Finance luncheon about Monetary Policy and the 2018 Outlook.