Money News Overview Monday 30th October 2023: Markets await Bank of England policy announcement later in the week

Yesterday, the BoE MPC voted 5 to 4 in favour of a 25bps rate drop. In the run-up to the announcement, markets anticipated a close call, with pricing leaning slightly towards a rate drop.

This week we have the Bank of England policy announcement that will take centre stage on Thursday.

The pound has had a negative run of late following the Bank of England’s decision last month to not raise interest rates.

This week’s policy announcement is expected to confirm the Bank will not be increasing rates for a second consecutive month. Markets will be keen to see what kind of comments come out of this meeting and what the long-term view is going forward regarding interest rates.

GBP remains rangebound against the euro with very little movement over the past week, but it is expected that the Bank of England’s policy announcement could break the deadlock and either push it lower to fresh multi-month lows or even prompt a rebound.

This week’s highlight for the Euro will be the release of the Eurozone inflation figures for October.

For today, German GDP flash estimates for the quarter have come in a little better than expected. Later in the morning we have the Business & Consumer Confidence figures for the EU, followed by German CPI numbers later this afternoon.

For the UK, we have the Mortgage Approvals and Lending figures due this morning. Finally, to confirm there is no US data due today. 

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