Both the Bank of England and the European Central Bank are on the list of central banks meeting next week, which also includes Australia, Mexico, Russia, and the Czech Republic. Watchers of the Federal Reserve’s Federal Open Market Committee will have to wait three weeks before the next meeting takes place.
ECB – no news
We do not expect much news from the European Central Bank at the upcoming meeting as data has improved over the last month while we still do not believe that any credit programme for small and medium-sized enterprises (SMEs) has been finalised.
BoE – close call
The Bank of England meeting, however, has such potential. Not only is it Governor Mervyn King’s last meeting in charge of the Monetary Policy Committee, but at the last four meetings King, plus committee members Fisher and Miles, have all called for more quantitative easing (QE) – GBP 25 billion. In addition, CPI inflation eased considerably in April to 2.4 percent year-on-year from 2.8 percent – the lowest rate of inflation since September 2012. Core inflation also dropped in April to just 2 percent from 2.4 percent a month earlier. On balance we do not expect expect more QE at King’s final meeting, but it is a close call.
Click here to read the full report: Central bank meetings 2013-05-31
SAXO BANK