Super Thursday: a big day for the Bank of England

Today the Bank of England will release its decision on interest rates, the monetary policy committee minutes and the quarterly inflation report with its view on the state of the UK economy.

These will be announced at noon and shortly after, Mark Carney will hold a press conference to explain the decisions made and outline the Bank’s views on the economy.

Previously, these announcements were traditionally spread out over a short period of time, making the data easier to digest, generating the term ‘Super Thursday’.

Carney wants to make the Bank’s decision making process more transparent [1].

This is exciting although volatile for economists and the financial markets, as it will have a potentially huge impact on sterling and trading values.

It will also determine the direction of mortgages rates and borrowing costs in the imminent future.

Considering in the year to June, inflation was non-existent. Strong wage growth and various signs that the economy is going from strength to strength, could put added pressure on pushing for a high inflation, triggering a burst of inflation which could shake up the economy.

The awaited announcement will also determine whether the central banks think they will hit their 2% target.

But most importantly will confirm what the Bank have to say about productivity and where the UK is headed.

[1]. The Guardian. ‘Super Thursday: the Bank of England’s triple data day explained.’