Market insights

It's Super Thursday. What's the Bank of England going to do? - Market Insight 3rd August 2023

Buckle up - it's Super Thursday. There's either going to be a high degree of volatility.....or it will be a storm in a teacup.

Midday sees the Bank of England release a raft of data. The base rate is expected to be hiked 25 points to 5.25%.

With inflation still rampant this looks to be nailed on. However either a hold, or a 50 point hike could have huge implications for the Pound. A hold will see the Pound tumble against other major currencies and a 0.5% hike would see Sterling go off to the races.

There's also the Monetary Policy Committee vote count. This will be closely watched. The expectation is for 7 to 2 in favour of the 25 point jump. Any variance from that could also shift Pound rates.

If that wasn't enough there's also the BoE asset purchase facility news and a speech by the BoE Governor, Andrew Bailey.

Then we turn to the States for their initial jobless claims number and their Institute for Supply Management purchasing managers index for services.

Business news centres on the impact of a potential 14th rate hike by the Bank of England and what that means to households and their mortgage rates.

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Economic calendar

UK: 12:00 BoE Interest Rate Decision

UK: 12:00 MPC Vote Count

UK: 12:00 BoE Asset Purchase Facility

UK: 12:30 BoE's Andrew Bailey Speech

US: 13:30 Initial Jobless Claims

US: 15:00 ISM Services PMI

As ever we look forward to looking after you and please keep an eye out for our next Insight.

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