Focus on ECB and BoE

Thursday 6 November 2008 - UBS Morning Audio Comment: Focus on ECB and BoE

Presented by amit kara




+ Asian equity markets followed the US markets lower with losses of around 6% recorded across the board. Equity markets are set to remain volatile as the markets tussle between GDP growth prospects on the one hand and the effects of the various policy actions on the other.


+ On that score the focus for today is very much on the ECB and Bank of England rate decisions. Both central banks are expected to cut interest rates by 50bp but there is a fair chance that the BoE cuts by more 50bp, perhaps even 100bp.


+ At the press conference that will follow the ECB decision, Trichet is expected to sound dovish on GDP growth and on inflation prospects, and perhaps signal more rate cuts ahead. The Bank of England's statement is likely to be more agnostic on future policy rates. As such we see ECB and BoE rates reaching a trough of 2% next year.


+ Other than that we get job claims data, Q3 productivity and labour costs from the US. In Europe the only data of note is German factory orders and here in the UK we get Halifax house price data for October.

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News & Politics

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• BoE
• asia
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• downturn
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• halifax