14, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The Bank of England quarterly forecasts is expected to point to the fact that UK GDP growth will remain sluggish in the next few years. This will pave the way to further economic growth stimulation in the coming months, as well as for measures whose main goal is to make sure that people are aware of the bank's intention to continue to pursue a loose monetary policy.

This quarterly inflation report will be the last one for the Governor of the Bank Mervyn King, who will resign in July, handing power to Mark Carney. Meanwhile, Carney signaled that the bank will adhere to certain principles and promise to continue to pursue a policy change as long as certain conditions are met - such as reducing the unemployment rate to a certain level or higher inflation.

According to Investec economist Victoria Clerk Carney probably going to make more rapid economic growth. "We expect that with the arrival of a new manager we will see the adoption of measures aimed at the gradual recovery of the economy," - she said.

In addition, other economic reports that are likely to point to a gradual increase in unemployment and slowing wage growth will be published this week.