BOE Inflation Report to Leave Forecasts Unchanged Remain Optimistic

May 8, 2015 Share Print 0

The Bank of England was forced to refrain from participating actively in the markets as the U.K. elections were underway. The Conservative win has allowed the central bank to come back into the market and next week the Old lady of Threadneedle Street will have plenty to do. Earlier in the week the monetary policy statement will be released. There is no expectation of a rate change but the comments from BOE members in their meetings with the press will start pouring in to an anxious market. The inflation Report is the highlight of the week for the GBP.

Macro economic conditions have changed since the last Quarterly Inflation Report (QIR). Deflationary pressures from cheaper oil prices have backed down. The forecast from analysts and economist is for no change in the economic expectations of the United Kingdom and with political stability now assured after the elections the message will be optimistic and GBP positive.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.