Cable is back in the focus with a datapoint that could move consensus on the next BOE meeting. According to the latest survey, 67% of economists believe there will be a quarter-point rate hike. Rest of the economists expect the BOE will pause.
Traders were disappointed by the GDP figures and expected that a hike would be less likely. However, if GDP rises more than expected, then the consensus surrounding a rate increase could strengthen and support the pound.
Here are some things to keep an eye on
UK February Monthly GDP Growth Expected to be 0.1% Comparable to 0.3% in Jan, this was a surprise improvement on the -0.5% in December. The UK was able to manage a positive quarter last year and not fall into recession. However, slow growth worries have not disappeared. The expected rolling three-month growth rate will be -0.1%, compared to 0.0% previously.
Another negative sign is likely to be seen in manufacturing productionAlthough not as bad as the previous month, it is still worrying. Annual Manufacturing Production is forecast at -4.7%, compared to January’s -5.2%. This is partly due to a turnaround of the monthly figure which is expected to be 0.2%, compared with -0.3% reported…
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