RTTNews - Thursday, the Bank of England and the European Central Bank are set to announce their interest rate decisions. Both central banks are expected to hold their key interest rates at record low levels.
At the end of two-day rate setting meeting, the Monetary Policy Committee of BoE is forecast to maintain the Bank Rate at 0.5%, the lowest since the central bank was established in 1694. The decision is due at 7.00am ET.
In the last month meeting, the BoE had decided to raise the size of the asset purchase plan by a GBP 50 billion to a total GBP 125 billion. Economists now expect the MPC to continue with the asset purchase programme using central bank reserves without raising the size of the plan.
The British Chambers of Commerce urged the MPC to accelerate the tempo at which they execute the asset purchase programme and to increase the scheme's size beyond GBP 125 billion.
At 7.45am ET, the European Central Bank is expected. The central bank is forecast to stay pat on key rate. Following a 25 basis point reduction in May, the central bank is expected to hold the interest rate on the main refinancing operations of the Eurosystem at 1%.
At 2.45am ET, the French statistical office INSEE is scheduled to issue ILO unemployment data. The mainland ILO jobless rate in the first quarter is seen at 8.3%, up from 7.8% in the fourth quarter.
The statistical reports due at 3.00am ET are Hungarian trade balance and Romania's average nominal wages. Half an hour later, consumer prices data is due from Statistics Netherlands. Dutch annual inflation is expected to ease to 1.5% in May from 1.8% in April.
Thereafter, euro area retail sales data is due from Eurostat at 5.00am ET. Economists forecast retail sales to grow 0.2% month-on-month in April following a 0.6% fall in March. In the meantime, the Iceland central bank decision is also due.
For comments and feedback: contact firstname.lastname@example.org