Thursdays Bank of England MPC meeting is going to be heavily scrutinized as BoE governor Mark Carney has already mentioned that headline interest rate are going to be cut in either this week’s meeting or next months meeting. Any further talks of this will almost certainly see the pound fall across the board. If we do actually see a cut in Thursdays MPC meeting, the rates could fall by around 5%. The probability of a rate cut from the OIS curve has increased over the weekend and there is now a 77% chance that we will see a rate cut in Thursdays meeting by a quarter point.
A Quiet start to the week with only the US Labor Market Conditions Index Change scheduled for today.
The eurogroup of finance ministers meet today and topics for discussion include the impact of the UK referendum result and the european commission’s call for sanctions against Spain and Portugal for braching budget deficit limits.
Morning Market Rates