The most important events on Thursday are going to be the meetings by the central banks of Switzerland and the UK. The SNB Interest Rate Decision is due at 10:30 am (all times stated in GMT+2). The rate is expected to remain unchanged at the current level of -0.75%. The main issue for the Swiss economy, as well as for other economies in the eurozone remains low inflation. The Swiss Consumer Price Index demonstrates negative figures and keeps falling since November last year. However, the possibility of using interest rates to accelerate inflation is non-existent as the rate already stands at extremely low levels. In addition, investors will pay attention to the SNB press conference, due at 10:30 am, where regulator’ officials will discuss the current state of the Swiss economy. The BoE Interest Rate Decision is due at 2 pm. According to forecasts, the rate will remain unchanged at 0.5%, same as the Asset Purchase Facility that currently stands at 375 billion Pounds. The Bank of England Minutes will be released at 2 pm and will contain information regarding the future direction of monetary policy.
In addition, attention needs to be paid to data on Trade Balance in the UK that is due at 11:30 am. Economists expect Trade Balance non-EU deficit and Total Trade Balance deficit to increase. German Buba President Weidmann speech is due at 8 pm, in which he might discuss current economic conditions in Germany. Finally, the Business NZ PMI is due at 11:30 pm. At present, the index remains well above the 50-point threshold and is unlikely to fall below the mark.