China Holds Loan Prime Rates Steady in January as Market Expectations Align 
China’s AI Models Narrow the Gap With the West, Says Google DeepMind CEO 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Philippine Central Bank Signals Steady Interest Rates as Inflation Rises and Growth Slows 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Fed’s Anna Paulson Signals Rate Cuts May Come Later as Inflation Cools and Labor Market Stabilizes 
Bank of England (BOE) is scheduled to announce its monetary policy at 11:00 GMT, will release minutes of meeting along with.
Pound is trading just below key resistance of 1.543 against Dollar, heading into monetary policy statement.
Bank of England (BOE) governor Mark Carney has reiterated his view of rate hike to be next probable path at turn of the year even after financial market volatility arising from Chinese instability.
Preview -
- Monetary policy decision - No major change is expected from interest rates point of view, however hawkish tone in the policy statement might set the mood for Pound and Gilts.
- BOE minutes - Minutes would be closely watched by economists and market participants as it would include hawkish and dovish members. In last policy meeting, Ian McCafferty voted in favor of hiking rates, while another prior hawk Matin Weale kept his silence in favor of wait and watch. A new member has joined the team, Dr Gertjan Vlieghee replacing Mr. David Miles in August.
Market is expecting at least 1 hawk in the team, Mr. Ian McCafferty (hope he hasn't changed his mind due to China). Presence of any more hawks would be very bullish for Pound. Presence of three hawks would be very bullish for Pound as it would indicate presence of a new hawk, even if Mr. Weale votes to hike rates.
