Thursday preview: BoE expected to keep interest rates unchanged

The Bank of England is widely expected to keep interest rates unchanged for the 85th month in a row when it announces its latest policy decision on Thursday.

Analysts predict the BoE will vote unanimously to hold the benchmark rate at 0.50% and the asset purchase programme at £375bn amid prolonged low inflation, political uncertainty surrounding the 23 June referendum on Britain’s European Union membership and concerns about a global economic slowdown.

Interest rates have been at a record low of 0.50% since March 2009 and are expected to stay there throughout this year.

The International Monetary Fund on Tuesday warned that the UK was at risk of “severe regional and global damage” if Britons voted to exit the EU as it would disrupt established trading relationships.

The IMF also cut its forecast for global growth in 2016 to 3.2% from the 3.4% it expected in January, with all advanced economies revised downwards. The UK's growth is expected to slow to 1.9% in 2016 from the 2.2% growth last year, before bouncing back to 2.2% in 2017.

Concerns about economic growth and a possible Brexit were discussed at the BoE’s last policy meeting and are likely to be considered on Thursday.

Inflation is also a major factor. While it has improved slightly, it remains well below the Bank’s 2% target. The Office for National Statistics said on Tuesday consumer prices had risen 0.5% from a year earlier, beating analysts' estimates of 0.4%, as an early Easter lifted air fares and clothing prices rose, the Office for National Statistics revealed.

It marked an improvement on February's 0.3% gain and it was the fastest pace of growth since December 2014.

"Today’s increase is unlikely to spur the Bank of England into considering raising interest rates on Thursday with widespread consensus that this week will see the 85th consecutive month that the bank keeps interest rates on hold at their emergency level of 0.50%," said Maike Currie, investment director for personal investing at Fidelity International, on Tuesday.

Thursday 14 April

INTERIMS
Matchtech Group

INTERIM EX-DIVIDEND DATE
Manchester & London Investment Trust, Northamber

QUARTERLY PAYMENT DATE
GlaxoSmithKline

QUARTERLY EX-DIVIDEND DATE
Albion Technology & General VCT, Middlefield Canadian Income PCC, Schroder Income Growth Fund

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (EU) (10:00)
Consumer Price Index (US) (13:30)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)

FINALS
Epwin Group, Havelock Europa, JD Sports Fashion, OptiBiotix Health

IMSS
Hays

SPECIAL DIVIDEND PAYMENT DATE
GlaxoSmithKline

SPECIAL EX-DIVIDEND PAYMENT DATE
888 Holdings, Manchester & London Investment Trust, Octopus Titan VCT , Savills

EGMS
Advance Frontier Markets Fund Ltd, GCP Infrastructure Investments Ltd

AGMS
Advance Developing Markets Fund Ltd., BP, Heavitree Brewery, Leeds Building Society 13 3/8% Bearing Shares, Persimmon, Petards Group, Rio Tinto, Smith & Nephew, TMT Investments

TRADING ANNOUNCEMENTS
Burberry Group, Burberry Group, Hays, Mothercare, Persimmon, Poundland Group , Unilever

UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)

FINAL DIVIDEND PAYMENT DATE
Athelney Trust, Low & Bonar

FINAL EX-DIVIDEND DATE
888 Holdings, Arbuthnot Banking Group, Capital & Regional, Clarke (T.), Costain Group, Gulf Marine Services, Intu Properties, Johnson Service Group, JPMorgan American Inv Trust, Kerry Group 'A' Shares, Molins, Octopus Titan VCT , PPHE Hotel Group Ltd, Reckitt Benckiser Group, Sanne Group, Savills, Smurfit Kappa Group, SpaceandPeople, Standard Life, STV Group, Taptica International (DI), Telit Communications, Virgin Money Holdings (UK)

Q1
Unilever