The FTSE barely moved from 7100 just after the bell, the index continuing to struggle with momentum after falling in the second half of January. Similarly, after climbing to 7 and a half week highs against the dollar yesterday cable sat flat as the day got underway, while against the euro sterling dipped by 0.2% but crucially held onto the majority of Wednesday’s €1.17-crossing push.
There are a few things investors will be on the lookout for from the Bank of England. Following the relative strength of the UK’s 2016 GDP (the country outperforming both the US and Eurozone despite the Brexit uncertainty) analysts are expecting another upwards revision to its growth forecasts. Similarly, inflation’s rapid, weak-pound driven rise will likely cause the central bank to bump up their estimates for 2017 to 2.8%, a figure far higher than the its 2% target. Finally, given the strength of those 2 aforementioned metrics, Carney’s comments will be combed for any hints regarding the timing of a rate-hike, or at the very least a slight movement away from the neutral tone struck in November.
Elsewhere the Eurozone indices trickled lower after the bell, the DAX and CAC slipping 0.2% and 0.1% respectively. The region doesn’t have much to work with this Thursday, so any movement may be based on how the euro looks after the BoE statement.