European Economics Preview: Bank Of England Monetary Policy Announcement Due

The monetary policy announcement and the quarterly economic forecasts are due from the Bank of England on Thursday, headlining a busy day for the European economic news.

The central bank is set to keep its key interest rate unchanged at a record low of 0.10 percent and the existing quantitative easing at GBP 895 billion. The announcement is due at 7.00 am ET.

Markets expect the BoE to avoid any fresh hints on the timing of future policy tightening at the August meeting. The bank is likely to lift its inflation projections citing supply chain disruptions and energy base effects.

Other major economic reports due for the day are as follows:

At 2.00 am ET, Germany factory orders data is due from Destatis. Economists expect orders to grow 1.9 percent on month in June, reversing a 3.7 percent fall in May.

At 2.45 am ET, the French statistical office Insee is scheduled to issue industrial production data for June. Output is expected to climb 0.6 percent on month, reversing a 0.3 percent fall in May.

At 3.00 am ET, retail sales and construction output figures are due from the Czech Republic.

Half an hour later, Germany IHS Markit construction Purchasing Managers’ survey data is due.

At 4.00 am ET, the European Central Bank is slated to issue economic bulletin.

At 4.30 am ET, UK Markit/CIPS construction PMI data is due. Economists forecast the index to fall to 64.0 in July from 66.3 in June.

At 8.30 am ET, the Czech National Bank announces its monetary policy decision. The bank is expected to hike its key rate by 25 basis points to 0.75 percent.

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