UK: Focus on BoE and retail sales today - TDS

Analysts at TD Securities are expecting the BoE to adopt a somewhat more cautious tone at its Thursday decision as the MPC unanimously keeps Bank Rate on hold.

Key Quotes

“Despite a healthy labour market, inflation has come in below the BoE's forecast, domestic activity has completely stagnated, the international backdrop is weaker, and Brexit uncertainty has intensified. The MPC is likely to repeat that rates will rise "at a gradual pace and to a limited extent".”

“Retail sales are released earlier in the day, and we look for a disappointing 0.2% m/m decline versus consensus of 0.3% m/m and Visa spending data pointing to a roughly flat month, marking a third consecutive month of decline.”