Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…
Bank of England won’t tighten monetary policy this year
Above-target inflation can hardly make the Bank of England tighten monetary policy in 2017 or next year because Britain’s major financial institution is waiting to see if wage leaps catch up with price jumps and how divorce talks with the EU pan out, as a Reuters survey disclosed.
Last year UK citizens voted to leave the European block and envoys on Monday started a first round of talks on the terms of the split before the UK departs. It should take place at the end of March 2019.
There’s still little lucidity as for what tone the negotiations will take, though several Reuters surveys over the past few months have stated that fractious talks would be the worst result for both Britain's economy and its currency.
The medians in the survey of economists told that the Monetary Policy Committee is geared up towards holding Bank Rate at its record minimum of 0.25% until 2019. On average the forecasters gave an almost one-in-three likelihood of rates leaping before the end of this year.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.