FXstreet.com (Barcelona) - The Bank of England and the European Central Bank will announce today their monthly monetary policy decisions, with the markets in relative calm expecting their moves. While the Bank of England will probably lower rates by 25 basis points, the European Central bank is assumed to maintain its key rate on hold.

On the BoE side, indicators are mixed, in one hand, inflation is growing above the Bank's target, although is expected to slow down in the forthcoming months, and the growth has been stronger than expected in the last quarter of the year, but, on the other hand, the recent turmoil, the disappointing PMI indicators and the widespread feeling of a global economic slowdown ahead, will likely encourage the BoE to cut rates by 0,25% to 5,25%.

The situation for is not that clear for the ECB, facing a serious dilemma, with inflation rising above target in the Euro Zone, but with ISM in the US and PMI in Europe posting very weak readings and the perspective of a economic slowdown in the United States.

The ECB has been targeting the inflation as the firs goal of the Bank´s monetary policy in their statements, therefore, a rate cut today would take the market by surprise, which is not one of the bank's features, but with the weakness seen in the latest indicators, some voices have observed the possibility of the Bank changing , at least, their rhetoric from hawkish to neutral, as the first step to in order to give way to a period of rate cuts in the coming months.