Bank of England interest rate decision on Thursday

Bank of England official rate

British interest rate will be reviewed on Thursday 5-Feb, at noon. Currently, the interest rate is 0.50% remarkably low level and the consensus implies it will be unchanged, staying at 0.50%.

However, the downside risk is remained while major economies has unexpectedly cut their interest rate such as Canada and Australia, New Zealand's interest rate is expected be lowered in this year and US could delay lifting up their interest rate.

Today, Chinese central bank decided to cut reserve requirement ratio for banks to increase their lending, which implies more money will be provided into the market.

China cut the amount of cash banks must set aside as reserves in a bid to boost the supply of loans, as capital outflows and weakness at the nation's factories suggest a slowdown in the world's second-largest economy is deepening.
The reserve ratio will fall 50 basis points on Thursday, the People's Bank of China said on its website Wednesday. The level will drop to 19.5 per cent, based on previous statements, while some lenders to rural and small business get bigger reductions.
The PBOC joins more than a dozen global counterparts in easing monetary policy this year as tumbling commodity prices provide scope to support growth. While Premier Li Keqiang told global business leaders last month not to worry about weakening Chinese growth, the latest step signals policy makers are concerned the slowdown has yet to reach bottom.
"You have lot of the world easing monetary policy in a context in which inflation is going down, partly because of relatively slow growth and partly because of falling oil prices," said Edwin Truman, a former Federal Reserve and U.S. Treasury official who's now a senior fellow at the Peterson Institute for International Economics in Washington. China's latest move is "part of that general pattern."

Ref. China joins wave of global easing with cut to bank reserve ratio Read more: http://www.smh.com.au/business/china/china-joins-wave-of-global-easing-with-cut-to-bank-reserve-ratio-20150205-136fns.html#ixzz3Qo9BpDzG


Reserve Bank of Australia (RBA) has cut Australian interest rate 25bp from 2.50% to 2.25% on this Tuesday, which was unexpected though further cut had been concerned.

Posted on Forex Flyer: AUD interest rate review on this Tuesday