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4 Apr 2013
Forex Flash: Both BoE and ECB have a lot to live up to - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that both Both the ECB and the BOE have a lot to live up to after that BOJ announcement and we expect that both central banks will announce unchanged stances.
He writes, “We still expect the ECB to cut but today is premature and today could be more about Draghi reassuring the markets that progress is being made. The BOE decision in the wake of the announcement of a remit change could be more interesting given Governor King is pushing for restarting QE. The Cyprus shock won’t help the UK economy and there is certainly a potential for a surprise from the BOE.”
He writes, “We still expect the ECB to cut but today is premature and today could be more about Draghi reassuring the markets that progress is being made. The BOE decision in the wake of the announcement of a remit change could be more interesting given Governor King is pushing for restarting QE. The Cyprus shock won’t help the UK economy and there is certainly a potential for a surprise from the BOE.”