– We expect the ECB and BoE to keep policies unchanged today
– Watch FOMC minutes for any guidance of easing criteria
– Revised our USDINR three- and 12-month forecasts lower to 50.5 and 50.0
What to watch for today
GBP: On hold. We expect the Bank of England to keep policy unchanged at its policy meeting today. The minutes of the last meeting suggest that the BoE wants to see the impact of the Funding for Lending Scheme to assess the need for future easing. On that front, the latest credit conditions survey shows signs of improved lending conditions and suggests that the FLS is having an impact. The reduced risk of policy easing suggests that the GBP should continue to outperform the EUR even in the absence of renewed euro zone systemic concerns.
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Credit Suisse