When will the Bank of England Hike Interest rates

Good morning,

In what is a fairly quiet day for markets today’s German Industrial data for October will be watched particularly closely given ongoing concerns that economic growth in the euro areas largest economy is faltering.

Mario Draghi is about to get an idea of how far reality falls short of his intentions. Draghi has promised the ECB will act should current stimulus prove insufficient when it is reassessed early next year, and the central bank is said to be preparing a QE package to be discussed at the next monetary policy meeting on Jan. 22.

In the UK the Bank of England is willing to put aside its own forward guidance to determine how well the country’s eight largest lenders would fare in a crisis. Governor Mark Carney has said rate increases from the current record-low 0.5 percent are likely to be gradual and the peak in rates lower than in previous cycles. Yet in its stress test of the U.K.’s eight largest banks, the BOE assumes an increase to 4 percent by the end of 2015.

Martin Weale one of the MPC’s two hawks who have been voting for an immediate interest rate hike is scheduled to speak this evening.

In the US later today Fed President Lockhart who will become a voting FOMC member in January is due to speak. This will be particularly interesting to see how he responds to last Fridays strong payrolls.

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