Banking and UK monetary policy into City spotlight

Trekking tourists at Giza in Egypt. Picture: GettyTrekking tourists at Giza in Egypt. Picture: Getty
Trekking tourists at Giza in Egypt. Picture: Getty
The Bank of England’s quarterly inflation report will be even more closely watched than normal on Wednesday as it is likely to contain ideas for a new forward guidance policy.

Governor Mark Carney promised to consider ways of updating the policy after unemployment fell towards the bank’s target much faster than expected. He hinted that a revised version would be less reliant on a single metric.

Meanwhile, the commercial banks will also be in the spotlight as Barclays and Lloyds report annual figures amid a brewing storm surrounding bonuses and rumours that they will seek to sidestep new rules designed to cap payouts.

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There is also talk that Barclays plans to hike bonuses, while Lloyds’ chief executive could be in line for a payout.



• French industrial production – figures are likely to remain in positive territory.


• Thomas Cook – The group is expected to narrow underlying losses in its financial first quarter, but unrest in Egypt and Thailand may have taken the edge off the holiday firm’s turnaround story.


• Tullow Oil – Tullow is expected to report pre-tax profits of around $1 billion (£600 million), slightly lower than last year.


• Lloyds Banking Group – The bank has left little to be revealed in its annual results, having already released a shock update revealing an extra £1.8bn in PPI provisions and guided towards a small profit for the year.

• Rolls-Royce – The engine maker is expected to have powered profits higher, with forecasts suggesting a rise of a quarter, to almost £1.9bn.


• US industrial production – Growth is likely to have remained weak at around 0.3 per cent.