By ForexMansion.com
For sure, as of 11:00 GMT, eyes will be on the BoE which will announce rate decision and Asset purchase target, where expectations are in favor of holding both steady at 0.50% and 200 billion pounds. Although expectations refer to no change in monetary policy, yet the BOE may surprise markets by either raising borrowing cost to halt the 4.4% inflation or expand the APF to boost growth that recorded 0.5% contraction in the fourth quarter.
Yesterday, UK manufacturing production slipped to 0.0% in February from the revised 0.9% in January, while the annual reading came in at 4.9%, below the revised of 6.6%. Industrial production for the same month reached -1.2% from the revised -0.3%, while the year on year reading fell to 2.4% from the revised 4.2%.
The grim manufacturing data add to concerns and worsens that outlook for the British economy that is reeling from slowdown in growth and rise in inflation amid sharp spending cuts adopted by the government to trim the huge budget deficit. Thus, the outlook for the pair remains to the downside.
Originally posted here
