The Bank of England was a subtle rebuke to the certainties of markets – markets are convinced UK rates are not going up, and yet there was a (single) vote to raise rates now. The division between economists and markets is a global issue.
Euro area data includes inflation figures from Spain and Italy (Spain's headline stays negative, but from an economic perspective this is a relative price change and not deflation). Merkel and Draghi meet for a cosy chat.
Three Fed speakers crowd the spotlight today including Dudley and Williams. Markets want to be dovish and doubtless will view their remarks through the prism of that particular prejudice.
There is something of a data dump of US economic information today – the central message is likely to be of an economy performing perfectly adequately, but with noticeable distortions in the nominal (not real) data from energy prices and the dollar.
