The Week Ahead: Federal Reserve and Bank of England rates decisions

Will the Fed be moved to change monetary policy with the new US president and will the UK keep its interest rates unchanged this year?

Fund Strategy looks at some key events shaping the week and what to expect.

Monday 30 January

  • Porvair (Q4 results)

The Share Centre investment research analyst Graham Spooner says: “Investors will be expecting a positive set of results from the company, based on the update in December, which stated that revenues were higher and that trading in the final quarter was strong.

“This specialist filtrations group aims to focus on markets that show long-term growth potential and where the product use is mandatory. As ever the outlook for the year ahead will be important.”

Tuesday 31 January

  • EU Inflation Statistics
  • EU Unemployment Statistics
  • Euro area inflation
  • France – GDP Q4 (preliminary)
  • Germany – unemployment data

Wednesday 1 February

  • China – manufacturing purchasing managers index
  • European Central Bank non-monetary policy meeting
  • ISM Manufacturing Index (US)
  • UK Manufacturing Purchasing Managers’ Index

Last month, the manufacturing PMI rising to 56.1 a 30 month high, the construction PMI rising to 54.2, an 11 month high, and the Business Activity Index for services rising to 56.2, a 17 month high.

  • US Federal Reserve – interest rate decision

Thursday 2 February

  • Bank of England Inflation Report and press conference

Spooner says: “Inflation rose more than expected last month, but then the latest purchasing managers index pointed to much higher growth that was previously forecast.

“It is not likely that the MPC will announce a significant change in monetary policy today, but the minutes may reveal diverging opinion on when rates may rise, and the Inflation Report may well include upward projections for both GDP and inflation.”

It will also be the last meeting for deputy governor of the Bank Minouche Shafik, who is departing for the London School of Economics.

  • Deutsche Bank – annual press conference
  • OECD Consumer Price Indices
  • UK Construction Purchasing Managers’ Index – report
  • UK Monetary Policy Committee Meeting
  • Royal Dutch Shell (Q4 results)
  • Vodafone (Q3 trading update)

Friday 3 February

  • The Employment Situation – US statistical release
  • UK Services Purchasing Managers’ Index –