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2 Feb 2016
UK: February 2016 inflation report preview – Lloyds Bank
FXStreet (Delhi) – Research Team at Lloyds Bank, expects no change in UK policy stance at February's MPC meeting.
Key Quotes
“Ian McCafferty is set to continue his solitary campaign for an immediate rise in Bank Rate, despite signs of a softer global and UK outlook.
Downward near-term revisions to projections for both GDP growth and inflation are likely, but the MPC will continue to indicate a tightening bias by projecting inflation at or above the target beyond the 2-year horizon.
With the MPC's forecasts conditioned on a much shallower policy rate profile, a smaller inflation overshoot at the 3-year horizon than in November would send a dovish signal.”
Key Quotes
“Ian McCafferty is set to continue his solitary campaign for an immediate rise in Bank Rate, despite signs of a softer global and UK outlook.
Downward near-term revisions to projections for both GDP growth and inflation are likely, but the MPC will continue to indicate a tightening bias by projecting inflation at or above the target beyond the 2-year horizon.
With the MPC's forecasts conditioned on a much shallower policy rate profile, a smaller inflation overshoot at the 3-year horizon than in November would send a dovish signal.”