mask Federal Reserve Keeps Promise, Bank of England Today

15/ 06/ 2017

Federal Reserve Keeps Promise, Bank of England Today

Daily Update - 15th June 2017

Yesterday’s Market

USD Retails Sales, Consumer Price Index, FOMC Economic Projection Report, USD FED Monitory Policy Statement Report, USD FED Interest Rate Decision, USD FOMC Press Conference

  • EUR Consumer Price Index
  • EUR Industrial Production

Yesterday’s explained

As widely expected, the U.S. Federal Reserve raised interest rates for the second time this year even though it knows that inflation is running well below its target.In addition to the rate hike, the Fed revealed more detail on how it will trim its $4.5 trillion balance sheet, or its portfolio of Treasury instruments, mortgage-backed securities and government agency debt.

The Federal Open Market Committee raised its benchmark target a quarter point. The new range will be 1 percent to 1.25 percent for a rate that currently stands at 0.91 percent.Additionally, the Fed now believes inflation will fall well short of its mandated 2 percent target in 2017. The FOMC also said it will begin the process this year of letting some of the balance sheet portfolio run off.

Today’s Market

  • GBP BOE Interest Rate decision, Monetary policy summary, Bank of England minutes, Asset purchase facility, MPC vote hike
  • USD Initial Jobless claims
  • Philadelphia Fed Manufacturing Survey

Today’s Focus

The Bank of England’s interest rate decision will be published today. It is expected that the interest rate will remain at the same level of 0.25%. Also at this time are published: a report on the monetary policy with the results of voting on the rate and other issues, as well as with comments on the state of the economy; the protocol of the Bank of England’s Monetary Policy Committee (MPC) with the distribution of votes for and against the increase / decrease in the interest rate. The Bank of England will be very cautious about the issue of raising the interest rate, despite the high level of inflation in the country. The pound continues to remain under pressure amid uncertainty around Brexit.