The Bank of England is expected to announce no change in policy when it reveals the outcome of its most recent meeting later. The Bank is likely to hold interest rates at 0.5% and leave its £200bn asset purchase programme unchanged.

Last month, the central bank said that the fragile economy and the risk of inflation falling below its target of 2% had led it to extend its quantitative easing scheme, which runs out in January.

Yesterday, Chancellor Alistair Darling said the economy would shrink by 4.75% this year and that consumer inflation would rise from 1.5% to about 3% early next year before falling back.

In the US today’s data includes closely watched weekly jobless claims and international trade; both at 1.30pm Treasury Secretary Tim Geithner talks TARP at a Congressional Oversight Panel hearing at 3pm.

The UK market and the European markets are currently flat. US futures markets are pointing to a slightly negative start to trading with the Dow opening down 15 points.

© Brooks Macdonald Asset Management 2009

Sources: Reuters: BBC, Bloomberg, Lawshare, Deutsche Bank (db), Proquote, Financial Times, Wall Street

Journal, CLSA, Sharescope, Market News, Capital Economics, CNBC, Wikipedia.

Please note this report provides a guide to some of the relevant areas that individual investors should consider discussing with an authorised adviser in relation to their specific circumstances, it does not constitute individual advice. As a result no action should be taken or refrained from being taken as a result of its content.