Monday, July 30, 2007
In the euro zone, the ECB is forecast to keep interest rates on hold on Thursday at 4.0%. There will be no press conference. Data on unemployment, inflation and the PMI surveys may influence the timing of the next ECB rate increase to 4.25%, widely expect
The Bank of England MPC is forecast to keep interest rates on hold on Thursday at 5.75%. Resistance to higher rates from three MPC members at the July meeting and the publication of the August Inflation Report suggest the MPC is likely to take stock of recent data and inflation prospects in the months ahead before deciding whether more rate increases are justified. UK data this week includes manufacturing and services PMI's which may indicate that the economy is already responding to previous rate rises and that a further hike may not be necessary.