Research Team at Lloyds Bank, suggests that the Bank of England’s monetary policy announcement at midday, with the simultaneous publication of the minutes to this month’s meeting and the Inflation Report will provide the key focus for today. Key Quotes “While no change in policy rates is widely expected, the minutes are expected to show an unchanged vote from last month of 8-1, with the majority of the Committee likely to remain unpersuaded of the need for higher interest rates. While we suspect that Ian McCafferty maintained his solitary call for an immediate hike in policy rates, there is a risk that he may reverse this view in light of recent events, which would be seen as a dovish signal. The impact of recent market gyrations is likely to be reflected in near-term downgrades to forecasts for UK GDP and inflation in the Inflation Report. Moreover, the accompanying press conference at 12.30 GMT – chaired by Governor Carney – is likely to focus on the uncertainties to the economic outlook from global developments. Elsewhere, US factory orders for December are expected to have fallen sharply (-2.4%), reflecting the weakness of production surveys and a steep decline in durable goods orders.” For more information, read our latest forex news.