Markets await release of BoE’s MPC policy minutes, Germany’s 2015 GDP growth data

The UK's Bank of England's MPC policy announcement is due today. However, the central bank is not expected to raise its interest rates in near-term. Indications that pay pressures are failing to materialise and UK's 2015 growth momentum being revised down have undermined the expectations of an early rise in interest rate.

Ian McCafferty is still expected to vote for raising interest rate. The MPC will assess the net influence of recent changes such as the pound's decline for its updated forecast for its February Inflation Report. However, the possibility of slow acceleration of inflation as compared with earlier expectations might urge more dovish tone from the minutes.

Meanwhile, Germany's 2015 GDP growth data is due to be released. If the economy expands at an annual rate of 1.7%, it will be consistent with the Q4's growth rate of 0.4%. Strong domestic demand might give comfort for the stability of euro area's rebound. Moreover, the ECB's December policy meeting is of some interest as this will confirm that the central bank stance for additional easing if the inflation trend in the currency bloc disappoints.