Here comes the BoE
STOXX 600 down 1.5%
Fed signals slower pace of cuts
Riksbank cuts; BoJ, Norges Bank hold
BoE to come
S&P futures edge up after Wednesday fall
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HERE COMES THE BOE
Just half an hour remains on the clock until the Bank of England (BoE) reveals its final policy decision of 2024, with expectations that it will hold rates steady at 4.75%.
The meeting comes hot on the heels of Tuesday's data showing UK pay growth speeding up as well as Wednesday's figures showing British inflation hitting an 8-month high. But all they did was underline expectations for a hold.
"Even before this week’s wages upside, a hold was highly likely today (the market prices less than 5% chance of a cut) as the BoE sits tight amid the uncertainty created by the Budget and the U.S. election," write Citi rates strategists in a Thursday morning note.
They do think though that the market is reaching the limit of how many cuts it can take out given the BoE is likely to reaffirm its easing bias into 2025, while policy is "still restrictive."
The breakdown of the MPC vote will be one to watch.
BNP Paribas markets team is expecting the BoE to keep the bank rate steady, with the MPC voting 8–1 in that direction while keeping its guidance unchanged.
"Even the one dissenting member we expect, Swati Dhingra, has shown support for a gradual approach and sees risks of a higher neutral rate range in the region of 2.50–3.50%," the BNP analysts write.
(Lucy Raitano)
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THURSDAY'S OTHER LIVE MARKETS POSTS:
GOLD: STILL A GOOD CHRISTMAS GIFT CLICK HERE
FED SENDS STOXX 600 TO NEAR THREE-WEEK LOW CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SLIDE ON FED OUTLOOK CLICK HERE
JAPAN HOLDS, BANK OF ENGLAND UP NEXT CLICK HERE
US Dollar Index https://reut.rs/3ZMxNR8
European shares dive after Fed https://reut.rs/3Dh7vij
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