The Bank of England (BoE) is widely expected to cut its key interest rate from the historic 0.5% low to the even lower 0.25%.
Editor’s Remarks: The institution was also expected to cut rates last month but decided against. Following the Brexit vote, economic data for the UK has been poor, with significant drops in services, manufacturing and construction. The real estate sector has also seen steep drops in prices, especially in the luxury segment. Most economists believe that it is time for the BoE to act and boost the economy. The BoE will hopefully have more teeth than the BOJ, which opted against easing or changes in the key rate and went for doubling up on buying company shares instead. Brexit consequences are still unravelling, and it remains to be seen whether whatever action from the BoE would have an actual effect on the real economy or if it would just be a wasted decision at this point.
What to watch: BoE MPC, 2-year Gilt, BOJ Monetary Policy