Following the FOMC policy last week, the central bank torch is now passed to the RBA and the BoE. The RBA decides on Tuesday, and while we don’t expect any policy action, we see the case for a dovish shift in the accompanying statement. Investors are also likely to pay attention to the Bank’s quarterly Statement on Monetary Policy, due out on Friday. On Thursday, it’s the BoE’s turn. We don’t expect any major policy change from this Bank either. Thus, the attention is likely to fall on the accompanying statement, the meeting minutes, the quarterly Inflation Report, and the press conference held by Governor Marc Carney.
Monday appears to be a relatively light day in terms of events and economic releases. The only data point worth mentioning is the UK construction PMI for January, which is expected to have declined slightly to 52.6 from 52.8. On Friday, the manufacturing index fell by more than anticipated, to 52.8 from 54.2, which probably tilts the risks surrounding the construction forecast to the downside, perhaps for a larger...
On Tuesday, during the Asian morning, it’s the turn of the RBA to decide on interest rates for the first time this year. The Bank has been...
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