While the majors calendar is very light, today marks the first of two 'Scandi inflation' days. Focus will in particular turn to the inflation print in Norway where we expect another core measure print above Norges Bank's forecast. Yet, even if proven right, we still expect another rate cut in September. In Denmark we expect the summer fuel price drop to have outweighed base effects, leading to a 0.1pp drop in the yearly inflation rate. Finally, the monthly release of Prospera inflation expectations in Sweden will give further information to the Riksbank about the effectiveness of monetary policy ahead of the July inflation print due tomorrow.
In the UK, the Bank of England (BoE) will release a statement in which the central bank will "announce its response to the shortfall" for yesterday's bond purchase operation.
In the Eurozone, industrial production in France, Finland, Slovakia and Slovenia could give indications of the aggregate production print which is due on Friday.
In line with consensus expectations and market pricing, we expect the Reserve Bank of New Zealand to cut the cash rate by 25bp to 2.00%.
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