Thursday preview: BoE delivers policy decision, minutes and Inflation Report

The Bank of England is widely expected to keep interest rates unchanged on Thursday when the central bank announces its latest policy decision.

The BoE’s Monetary Policy Committee is once again projected to vote 8-1 on maintaining the benchmark rate at 0.5% amid low inflation and weak global growth. Many see Ian McCafferty remaining the only member of the MPC to vote in favour of a rate hike.

“Whether the Bank of England acts on interest rates at all in 2016 currently looks touch and go,” said Howard Archer, chief UK and European economist at IHS Global Insight.

“Governor Mark Carney’s recent high profile speech indicated that UK growth and inflation since last summer has been weaker than the Bank of England had expected, and the conditions are not in place for an interest rate hike. His speech fuelled the view that the Bank of England could sit tight on interest rates through 2016.”

Since the MPC is not expected to deliver any surprises, focus will be on the minutes of the February policy meeting and the Inflation Report for clues on the timing of the first interest rate increase.

The Inflation Report will be of particular interest as it outlines the outlook for the economy and inflation.

“While the near-term UK growth and consumer price inflation outlook has weakened, of key importance will be has the Bank of England become more downbeat about the longer-term outlook?,” Archer said.

Thursday 04 February

INTERIMS
Avanti Capital

INTERIM DIVIDEND PAYMENT DATE
Anglo Pacific Group, Tongaat-Hulett Ltd.

INTERIM EX-DIVIDEND DATE
Cohort, CPL Resources, Daejan Holdings, Downing One VCT , Drum Income Plus Reit, NB Private Equity Partners Ltd., Puma VCT 10 , Puma Vct 8, Puma VCT 9, Puma Vct VII, Stagecoach Group

QUARTERLY EX-DIVIDEND DATE
Custodian Reit , JPMorgan Claverhouse Inv Trust, SQN Asset Finance Income Fund Limited, Toro Limited , Unilever

Q4
Royal Dutch Shell 'A', Royal Dutch Shell 'B'

FINALS
AstraZeneca, Primary Health Properties, Royal Dutch Shell 'A', Royal Dutch Shell 'B', Smith & Nephew

SPECIAL DIVIDEND PAYMENT DATE
Scottish Inv Trust

EGMS
Glenwick

AGMS
Compass Group, Connect Group

TRADING ANNOUNCEMENTS
Compass Group

FINAL DIVIDEND PAYMENT DATE
Scottish Inv Trust, Topps Tiles, WH Smith

FINAL EX-DIVIDEND DATE
CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, Imperial Tobacco Group, P2P Global Investments C, Terra Capital, Urban&Civic , Victrex plc