UK services PMI mildly disappointed

UK services PMI mildly disappointed at 57.4 (cons: 58.0), dragging the overall composite down to 56.6 (from 57.4). Taken together with the construction and manufacturing indices earlier this week, these outturns are still broadly consistent with the Q3 GDP forecast of 0.7% q/q. The much more important UK developments come tonight, with the BoE's 'Mega Thursday' where we get the rate decision, MPC minutes, and Inflation Report. 

"We have a long GBP bias leading in the event, where we expect the overall takeaway will be that the BoE has taken a measurable step closer to a rate hike," says RBC Capital Markets.

The three MPC members are expected to vote for a rate hike this time, and alongside further signs of accelerating wages, OIS markets appear too dovishly priced (full rate rise priced by May/Jun'16).