CBE expected to hold rates steady today
Analysts expect the CBE to hold rates steady today at its MPC meeting. Eight out of 10 contributors to a Reuters poll say they did not expect a hike despite suggestions to the contrary making the rounds of the market earlier in the week. “The central bank increased interest rates by an aggressive 150 basis points at the last meeting as a preemptive move against likely inflationary pressures following the March 14 devaluation of the pound,” EFG Hermes’ Mohamed Abu Basha told the wire. “We don’t see another hike as likely at this meeting. The central bank needs to assess the impact of the previous hike before embarking on its next move, in our view,” he added.
And across the pond, Donald Trump has given a foreign policy speech (shockingly, it centers on “America first” exceptionalism with a heavy dose of “my way or the highway” for allies and enemies alike) and Bernie Sanders may be signalling he’s accepting that he is unlikely to become the Democratic nominee.