27 Jan 2015
Solid UK Q4 GDP expected - RBS
FXStreet (Bali) - Brian Daingerfield, FX Trading Strategist at RBS, expects a still-solid 0.6% q/q growth pace in the UK later today, which should support a relatively hawkish BoE stance and be GBP-positive.
Key Quotes
"UK 4Q GDP is due, and our economists cover the release in depth in their GDP tracker. We expect a still-solid 0.6% q/q growth pace, which would reinforce a moderation in the pace of growth consistent with the softening of more forward-looking indicators."
"As my London-based colleagues point out in this week’s Sterling Strategy Weekly, it is important that the BoE’s MPC appears to be shifting towards delayed hikes, but not towards outright interest rate cuts."
"In an environment where lower inflation and inflation expectations are resulting in outright rate cuts in some centers, the BoE’s stance likely remains relatively hawkish and GBP-supportive.
Key Quotes
"UK 4Q GDP is due, and our economists cover the release in depth in their GDP tracker. We expect a still-solid 0.6% q/q growth pace, which would reinforce a moderation in the pace of growth consistent with the softening of more forward-looking indicators."
"As my London-based colleagues point out in this week’s Sterling Strategy Weekly, it is important that the BoE’s MPC appears to be shifting towards delayed hikes, but not towards outright interest rate cuts."
"In an environment where lower inflation and inflation expectations are resulting in outright rate cuts in some centers, the BoE’s stance likely remains relatively hawkish and GBP-supportive.