United Kingdom GBP

United Kingdom BoE Monetary Policy Report

Impact:
High
Source: Bank of England

Next Release:

Date:
Period:
What Does It Measure?
The Bank of England's (BoE) Monetary Policy Report measures the central bank's assessment of the UK economy, focusing on inflation, growth, and the overall economic outlook. It outlines monetary policy decisions, forecasts for key economic indicators, and the factors influencing these assessments, making it a vital national indicator for evaluating the effectiveness of monetary policy.
Frequency
The Monetary Policy Report is released quarterly, typically on the second Thursday of January, April, July, and October, providing a comprehensive review of economic conditions since the previous report.
Why Do Traders Care?
Traders closely monitor the BoE Monetary Policy Report as it directly influences expectations surrounding interest rates and monetary policy direction, subsequently impacting the British pound (GBP), government bonds, and equities. Significant revisions or forecasts can lead to immediate market reactions, shaping financial strategies and investment decisions.
What Is It Derived From?
This report is derived from a combination of economic data, including inflation rates, GDP growth figures, labor market statistics, and external economic conditions. The BoE conducts surveys among businesses and consumers, along with analyses of various economic indicators to create a comprehensive and data-driven assessment.
Description
The report provides an in-depth look at recent economic trends and forecasts, highlighting the BoE's objectives concerning inflation targeting and the anticipated economic trajectory. It includes a discussion of risks to the outlook, and its preliminary data can substantially influence financial markets as economic participants reinterpret market expectations.
Additional Notes
The Monetary Policy Report is considered a leading economic measure due to its influence on future monetary policy and market sentiment. It is crucial in understanding the broader economic landscape and may also correlate with other economic indicators and events, such as inflation data or employment reports.
Bullish or Bearish for Currency and Stocks
If the report indicates a more hawkish stance than expected, it may be classified as higher than expected, which is bullish for the GBP and bearish for stocks. Conversely, if the report suggests a dovish outlook, signaling lower interest rates or continued economic support, it could be classified as lower than expected, which is bearish for the GBP but bullish for stocks due to the potential for increased borrowing.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise