GBP loses out again
Sterling fell to five month lows after the US rate cut as investors resumed their rush to pour into safe haven currencies. The next Bank of England Meeting is taking place on 26th March and money markets are beginning to price in the likelihood of the bank following in the footsteps of the Federal Reserve, signalling an interest rate cut alongside a restart to the quantitative easing programme. The probability of a 25 basis point cut is now at 30%.
On Tuesday, the British Chambers of Commerce said that Britain’s economy looks on track to grow by the smallest amount since the financial crisis as the coronavirus outbreak threatens to drag major economies into recession.
The world’s fifth-biggest economy looks on track for growth of 0.8% this year, the BCC said, downgrading its forecast from 1.0%. The forecast was finalised after British authorities unleashed a major fiscal and monetary stimulus plan last week to help shield Britain’s economy from the coronavirus outbreak.
11.30 – Annual Budget Release.
12.30 – CPI MoM; Forecast at 0.0% against previous of 0.1%.
12.30 – Core CPI; Forecast same as previous at 0.2%.
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