European Economics Preview: Bank Of England Rate Decision Due

European Economics Preview: Bank Of England Rate Decision Due

August 12, 2020

The Bank of England is expected to keep its key interest rate and quantitative easing unchanged on Thursday.

The monetary policy announcement is due at 2.00 am ET. After expanding the QE by GBP 100 billion in June, markets expect the bank to hold the programme at GBP 745 billion and the interest rate at a historic low of 0.10 percent.

In the quarterly monetary policy report, to be released with the monetary policy report, the bank is expected to forecast a slow economic recovery from the coronavirus pandemic.

At 2.00 am ET, Destatis is scheduled to release Germany’s industrial orders data. Industrial orders are expected to grow 10.1 percent on month in June, slower than the 10.4 percent rise in May.

At 3.00 am ET, industrial production and foreign trade figures are due from the Czech Republic. Economists forecast production to shrink 14.3 percent on year in June, slower than the 25.7 percent decline in May.

In the meantime, industrial output data is due from Hungary. Output is seen falling 11 percent in June versus a 30.7 percent decrease in May.

Half an hour later, IHS Markit releases Germany’s construction PMI data.

At 4.00 am ET, industrial output data is due from Italy. Economists forecast production to grow moderately by 5.1 percent on month after surging 42.1 percent in May.

At 4.30 am ET, UK IHS Markit/CIPS construction PMI data is due. The PMI is forecast to rise to 57.0 in July from 55.3 in June.

At 8.30 am ET, the Czech National Bank interest rate announcement is due. The bank is expected to hold its key rate at 0.25 percent.

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