BoE and ECB Keeps Policy Stance Unchanged
The BoE, in its policy meeting yesterday, kept its key interest rate unchanged at 0.5%, as majority of policymakers adopted a “wait and watch” approach amid signs of weakening inflation in the UK. Additionally, today’s report has revealed that the BoE lowered its inflation forecasts for the next twelve months in the UK. However, Sterling investors have shown little reaction to this report as they remained focused on the official labour market report in the US which is anticipated to show that job growth and domestic earnings gained momentum for November.
Across Europe, the ECB indicated that it will decide on fresh stimulus in early next year as policymakers await the outcome of the recently introduced easing measures on the region’s economy.