What we will follow of the Boe interest rates decision at 14:00

At 14:00 we expect BoE decision on interest rates when there will be increased volatility. Analysts are of the opinion that there will be no change from the current 0.25% and purchase program bonds will be maintained.

Apart from the decision on interest rates, BoE will announce its forecast for the UK economy over the next three years. Important things that will follow at 14:00 are:

1. How central bank are optimistic about economic growth?
Performance of the economy improve after Brexit votes and loosening of government spending led many analysts to expect improvements in growth forecasts for November. President of the Central Bank was accused of too gloomy forecasts so far and this is likely to change today.

2. Will there be slack in the labor market?
Labor market to perform better than the expectations of BoE in November. The unemployment rate remained at 4.8% compared to prior expectations for an increase of 5.4% and average pay increased by 2.8% in November compared to the same period last year. This testifies to the stability of the economy.

3. Forecast of BoE for inflation:
The data point to 2.75% compared to the forecast of 3%, which creates an expectation of declines expectations of the meeting today. On the other hand the rise in oil prices over the past three months and the increase in the CPI will create an expectation of an increase in expectations.
Most likely BoE will announce that the desired inflation rates of 2% will be exceeded.

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